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U.S. markets regulators reach deal on Dodd-Frank swaps capital rules
By Michelle Price and Katanga Johnson
WASHINGTON, June 21 (Reuters) - U.S. markets regulators on Friday unveiled an agreement on how much capital and margin firms must hold when trading swaps based on securities, finalizing a key piece of the 2010 Dodd-Frank law introduced following the 2007-09 financial crisis.
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) agreed to fend off a regulatory overlap that would have drastically increased the capital burden for many firms already operating under CFTC rules, the regulators said.
The agreement underscores an unusual degree of harmonization between the two U.S. markets watchdogs, which in the past have been accused by the industry of jacking up their compliance bills by failing to coordinate. It is part of a broader push by U.S. President Trump appointees SEC Chairman Jay Clayton and CFTC Chairman Christopher Giancarlo to coordinate more closely on policy and enforcement matters.
"Moving these rules is a positive development in getting a big piece of Dodd Frank Title VII over the finish line, completing the mandate that Congress gave us," Republican Commissioner Hester Peirce, who led the SEC rule-writing effort, said in an interview.
"We're in the place we are because of the nice relationship with the CFTC," she added.
Title VII of Dodd-Frank handed the CFTC oversight of the vast majority of the U.S. swaps market, including interest rate and foreign exchange swaps, but gave the SEC oversight of the small slice of the swaps market based on individual securities.
Dodd-Frank aims to make the swaps market safer by requiring dealers to hold sufficient capital and margin against swaps, and by pushing more swaps through clearing houses which sit in between trades to guarantee payment in case either party defaults. The CFTC implemented most of its post-crisis rules by 2014 but the SEC has lagged far behind.
The SEC first proposed capital and margin rules for swaps in 2012 but until Friday had failed to finalize them. In a move that caught the industry by surprise, the Republican-led SEC last year said it would try to finalize its Dodd-Frank regime.
Over the past few months, the agencies have worked together to address problems with the SEC proposal.
The SEC rule would have subjected swap trading firms already registered and regulated by the CFTC to an additional capital requirement.
CFTC data showed this additional burden could potentially put many firms out of business. Friday's compromise would place the overwhelming majority of uncleared swaps trading by CFTC-registered firms under the CFTC's capital rules, avoiding the additional SEC charge.
The new rules will not become effective for at least 18 months, the SEC said.
Brian Quintenz, the Republican CFTC commissioner who led the project at the agency, told Reuters the regulators are also discussing allowing trading firms more ways to reduce margin requirements by offsetting uncleared swap hedges, a process known as "portfolio margining."
"We are going to be thinking about increased efficiencies in portfolio margining because having a good regime in this area can unleash a massive amount of capital in the real economy in a way that is very respectful of risk," said Quintenz. (Reporting by Michelle Price; Editing by Richard Chang) |
WRAPUP 15-Trump says he aborted retaliatory strike to spare Iranian lives
* Trump: three sites were targeted, 150 people would have died
* War fears rise after Iran shoots down U.S. military drone
* Iranian sources say Trump sends message via Oman
* Conflict would result in 'obliteration' -Trump to NBC News
* Trump speaks to Saudi crown prince about oil, regional stability
By Jeff Mason and Susan Heavey
WASHINGTON, June 21 (Reuters) - U.S. President Donald Trump said on Friday he aborted a military strike to retaliate for Iran's downing of an unmanned U.S. drone because it could have killed 150 people, and signaled he was open to talks with Tehran.
An Iranian surface-to-air missile destroyed a U.S. Global Hawk surveillance drone on Thursday. Tehran said the drone was shot down over its territory and Washington said it occurred in international airspace over the Strait of Hormuz.
The incident aggravated fears of a direct military clash between the longtime foes. Oil futures rose more than 1% to above $65 per barrel on Friday over worries about possible disruptions to crude exports from the Gulf.
Trump's decision to cancel what he said was a planned attack on three sites suggests he wants a diplomatic solution to end weeks of festering tensions with Iran, which Washington accuses of a spate of attacks on oil tankers in the Gulf region.
"I'm not looking for war, and if there is, it'll be obliteration like you've never seen before. But I'm not looking to do that," Trump told NBC News in an interview aired on Friday night.
Iranian sources told Reuters that Trump had warned Tehran via Oman that a U.S. attack was imminent, but had said he was against war and wanted talks. Washington also requested a closed-door U.N. Security Council meeting on Monday.
The State Department denied the Reuters report. "Reports that a message was passed last night to the Iranians via an Omani back channel are completely false. These reports are pure Iranian propoganda," department spokeswoman Morgan Ortagus said on Twitter.
In a series of early-morning tweets, Trump said he was in no hurry to launch a strike and that U.S. economic sanctions designed to force Iran to curb its nuclear and missile programs and its involvement in regional wars were having an effect.
"We were cocked & loaded to retaliate last night," Trump tweeted.
"Ten minutes before the strike I stopped it, not proportionate to shooting down an unmanned drone. I am in no hurry, our military is rebuilt, new, and ready to go, by far the best in the world," Trump tweeted.
Typically, the U.S. military would seek to target Iranian facilities that could be connected to the shooting down of the American drone. The military would not seek to inflict casualties and although Iranian military casualties could occur in an attack, forecasts such as 150 are normally only rough estimates.
White House national security adviser John Bolton, Secretary of State Mike Pompeo and CIA Director Gina Haspel, along with the rest of Trump's team, favored a retaliatory strike, a senior Trump administration official said.
"There was complete unanimity amongst the president's advisers and DOD (Department of Defense) leadership on an appropriate response to Iran's activities. The president made the final decision," said the official.
Trump's decision drew mixed reviews in Washington, with some people criticizing him for flinching while others, notably senior Democrats, praised what they saw as restraint.
"A strike of that amount of collateral damage would be very provocative, and I'm glad the president did not take that," House Speaker Nancy Pelosi, the top Democrat in Congress, told reporters.
However, Michael Makovsky, a former Pentagon official who heads the Jewish Institute for National Security of America, a think tank that favors strong U.S.-Israeli security ties, said Trump was undermining U.S. credibility.
"Trump has given the impression he lost his nerve," Makovsky said in a statement.
Iran's destruction of the U.S. drone was the latest among ever more serious incidents in the Gulf region, a critical artery for global oil supplies, since mid-May.
There have also been explosions on six oil tankers that the U.S. suspects Iran or its proxies of carrying out. Iran has denied any involvement.
After interviewing Trump for NBC's "Meet the Press" program, NBC correspondent Chuck Todd said Trump had said he had no preconditions for talks with Iran and was willing to speak to Iranian President Hassan Rouhani or Supreme Leader Ayatollah Ali Khamenei.
SECURITY THREATS IN IRAQ
U.S. forces are preparing to evacuate nearly 400 people working for Lockheed Martin Corp and Sallyport Global from an Iraqi military base north of Baghdad over potential security threats, Iraqi military sources said on Friday.
The sources did not give any details about the threats. Three bases hosting U.S. forces in Iraq have been attacked in the past week with no claims of responsibility. Local officials blamed Iran-backed Shi'ite militias for one of the incidents.
Trump on Friday spoke with Saudi Crown Prince Mohammed bin Salman about Middle East stability and the oil market, the White House said.
German Chancellor Angela Merkel said on Friday she and fellow EU leaders "are concerned about the situation and support diplomatic negotiations, a political solution for a very tense situation."
Some global airlines are re-routing flights to avoid Iran-controlled airspace over the Strait of Hormuz and Gulf of Oman, they said on Friday after the U.S. Federal Aviation Administration barred U.S. air carriers from the area.
TRUMP MESSAGE TO IRAN
News of the Trump message to Iran, delivered through Oman overnight, broke shortly after the New York Times reported that Trump had called off air strikes targeting Iranian radar and missile batteries at the last minute.
"In his message, Trump said he was against any war with Iran and wanted to talk to Tehran about various issues," one Iranian official told Reuters, speaking on condition of anonymity.
"He gave a short period of time to get our response, but Iran's immediate response was that it is up to Supreme Leader Khamenei to decide about this issue."
A second Iranian official said: "We made it clear that the leader is against any talks, but the message will be conveyed to him to make a decision.
"However, we told the Omani official that any attack against Iran will have regional and international consequences."
Khamenei has the last say on all state matters and has ruled out any talks with Washington while Tehran is under sanctions.
Trump's decision in May to tighten sanctions to try to eliminate Iran's oil exports led to the latest tensions. In May 2018, Trump unilaterally withdrew Washington from a 2015 accord between Iran and major powers under which Tehran curtailed its path to building a nuclear bomb in return for sanctions relief.
(Reporting by Jeff Mason and Susan Heavey; additional reporting by Babak Dehghanpisheh in Geneva, Jamie Freed in Singapore, Phil Stewart, David Alexander, Roberta Rampton, David Shepardson and Mohammad Zargham in Washington, Tom Westbrook in Sydney, Tom Balmforth in Moscow, Sabine Siebold in Brussels and Michelle Nichols at the United Nations; writing by Mark Heinrich, Alistair Bell and Arshad Mohammed; editing by Grant McCool, James Dalgleish, G Crosse & Simon Cameron-Moore) |
What Does MobileIron, Inc.'s (NASDAQ:MOBL) Share Price Indicate?
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MobileIron, Inc. (NASDAQ:MOBL), which is in the software business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine MobileIron’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for MobileIron
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 15% below my intrinsic value, which means if you buy MobileIron today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $6.89, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because MobileIron’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 11% in the upcoming year, the short-term outlook is positive for MobileIron. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?MOBL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping tabs on MOBL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on MobileIron. You can find everything you need to know about MobileIron inthe latest infographic research report. If you are no longer interested in MobileIron, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 1-Mexican foreign minister says Mexico will meet with 19 countries over migration plan
(Adds quote from foreign minister, president)
MEXICO CITY, June 21 (Reuters) - Mexican Foreign Minister Marcelo Ebrard said on Friday that Mexico would meet with 19 countries in the coming weeks in an attempt to boost support for a plan to stem illegal migration toward the United States.
Tens of thousands of mostly Central American migrants have been crossing Mexico to reach its northern border with the United States, with an angered U.S. President Donald Trump threatening to impose tariffs on Mexico.
"We already have 19 countries we will meet in the next couple of weeks so that this plan and its actions will grow," Ebrard said during the president's regular morning news conference. "Now it is about developed countries participating."
Ebrard said Mexico was investigating a network of human smugglers, including that of unaccompanied minors, which he said was on the rise, and the financing of these operations.
Mexican President Andres Manuel Lopez Obrador said that Mexico would evaluate the results of the deal it had reached with the United States to stem migration north.
"We want a good relationship with President Trump," Lopez Obrador reiterated, adding that, regardless of the often difficult and complex relationship, he had seen a willingness from Trump to come to an agreement.
Lopez Obrador met on Thursday with El Salvador's new president, Nayib Bukele, in the southern Mexican city of Tapachula, near the border with Guatemala, to launch a development plan aimed at stemming illegal migration.
Lopez Obrador said Mexico's priority was to address the root causes of illegal migration: poverty, violence and a lack of democracy in the countries of origin. (Reporting by Stefanie Eschenbacher and Lizbeth Diaz; editing by Jonathan Oatis) |
4 Electronic Stocks to Buy Regardless of Trade War Woes
The information age has witnessed unencumbered growth of electronics, and it continues to evolve shaping every aspect of our future. Innovation is the key to survival and prosper in this industry, and the companies are leaving no stone unturned to capitalize on the growing popularity of complex devices with breakthrough research initiatives.Rising demand in the consumer sector for connected appliances is acting as a key catalyst. Smart TVs with 8K resolution, bigger screens, higher capacity smartphones with advanced megapixel cameras, foldable smartphones, dual-screen laptops, high graphics performance gaming PCs and laptops, smart headphones, smart speakers, smart wearables and home security solutions reflect the evolution of consumer electronics and also sheds light on the path ahead.Moreover, robust implementation of advanced driver assisted systems (ADAS) in autonomous cars, rapid adoption of cloud, IoT, wearables, drones, virtual reality/ augmented reality (VR/AR) devices, is fueling growth prospects of digitization in electronics manufacturing.Growing proliferation of IoT techniques and demand for AI in emerging markets is transforming robotics, industrial automation, transportation systems, retail, healthcare, defense, banking and finance, aerospace, utility, among other sectors. The companies involved in developing the next-generation electronic devices are looking forward to carve out a niche in the fourth industrial revolution or Industry 4.0.Further, ongoing technical advancement in the telecommunication sector backed by accelerated deployment of 5G technology and strong efforts toward modification in Internet infrastructure are acting as tailwinds.Although high raw material costs owing to trade war tensions, rising freight expenses and volatility in commodity prices are deterrents in this domain, the electronics companies are stopping at nothing to prove their expertise.Making the Right ChoiceThe immense prospects of the electronics industry make it difficult to pick the right stock. It is here that theGrowth Style Scorecomes in handy. Our Growth Style Score condenses all the essential metrics from the company's financial statements to achieve a true sense of quality and sustainability of its growth.Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) when combined with Growth Score of A or B offer the best investment opportunities in the growth investing space. You can seethe complete list of today's Zacks #1 Rank stocks here.We have zeroed in on four electronics stocks with the favorable combination. Moreover, each of the stocks has outperformed the S&P 500 as well as broader technology sector year to date despite the trade war concerns.Year-to-Date Price Performance
4 Top Growth PicksHawthorne, CA-based,OSI Systems, Inc. OSIS is benefiting from demand for its specialized electronic systems and components primarily facilitating applications in homeland security, healthcare, defense and aerospace industries.OSI Systems has a Growth Style Score of A and a Zacks Rank #1. Notably, over the past 60 days, the Zacks Consensus Estimate for current fiscal year has moved upward by almost 5% to $4.22.The company has an average positive earnings surprise of approximately 24.2% in the trailing four quarters.Ewing, NJ-based,Universal Display CorporationOLED is a leading developer of technology and intellectual property (IP) for the organic light emitting diodes market. New OLED-based product launches from premium handset makers like Apple, Google, Huawei, Oppo, Samsung, and Vivo are expected to augment order growth rate and the top line in the days ahead. Further, growing clout of OLED panels in automotive end-markets is a tailwind.Universal Display has a Growth Style Score of B and a Zacks Rank #1. Notably, over the past 60 days, the Zacks Consensus Estimate for current fiscal year has moved upward by 20.2% to $2.44.The company has an average positive earnings surprise of approximately 56.2% in the trailing four quarters.Hillsboro, OR-based,Lattice Semiconductor CorporationLSCC continues to gain from the 4th Tectonic Shift in computing market with its low-power parallelizable architecture which is required in edge computing devices. Further, Lattice’s CrossLink solution which helps in video bridging for ADAS and infotainment systems is witnessing an improvement in its adoption rate.Lattice has a Growth Style Score of A and a Zacks Rank #2. Notably, over the past 60 days, the Zacks Consensus Estimate for current fiscal year has moved upward by almost 14% to 49 cents.The company has an average positive earnings surprise of approximately 33.1% in the trailing four quarters.Santa Rosa, CA-basedKeySight Technologies Inc. KEYS is benefiting from solid demand of its electronic design and test instrumentation systems. The company is beating the trade war woes by fortifying presence in the 5G network emulation market. Collaborations with Qualcomm, Xilinx and AT&T, and notable acquisitions including Ixia, Anite and AT4 Wireless have enriched Keysight’s 5G solutions portfolio.Keysight has a Growth Style Score of A and a Zacks Rank #2. Notably, over the past 30 days, the Zacks Consensus Estimate for current fiscal year has moved upward by 8.2% to $4.23.The company has an average positive earnings surprise of approximately 16.1% in the trailing four quarters.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportLattice Semiconductor Corporation (LSCC) : Free Stock Analysis ReportUniversal Display Corporation (OLED) : Free Stock Analysis ReportOSI Systems, Inc. (OSIS) : Free Stock Analysis ReportKeysight Technologies Inc. (KEYS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Lagardère SCA (EPA:MMB): What's The Analyst Consensus Outlook?
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Lagardère SCA's (EPA:MMB) latest earnings announcement in April 2019 suggested that the business experienced a strong tailwind, eventuating to a double-digit earnings growth of 10%. Below, I've presented key growth figures on how market analysts view Lagardère's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Lagardère
Market analysts' consensus outlook for this coming year seems pessimistic, with earnings reducing by a double-digit -19%. However, the following year shows a contrast, with earnings growth becoming positive at 8.6% compared to today's earnings level. Earnings are then expected to decrease to €199m in 2022.
Although it is helpful to understand the rate of growth year by year relative to today’s value, it may be more beneficial determining the rate at which the company is rising or falling every year, on average. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of Lagardère's earnings trajectory over time, fluctuate up and down. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 3.4%. This means, we can assume Lagardère will grow its earnings by 3.4% every year for the next few years.
For Lagardère, I've compiled three fundamental factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is MMB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether MMB is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MMB? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Slack Technologies Shares Extend Gain After First-Day Pop
(Bloomberg) -- Slack Technologies Inc. shares rose as much as 4.2% on Friday in their second day of trading.
The maker of software for workers to chat and collaborate on projects traded as high as $40.25 in New York. In Thursday’s debut, the stock opened at $38.50, well above the reference price of $26.
Slack shunned the traditional initial public offering route, and instead directly listed its shares on the New York Stock Exchange, allowing shareholders to sell right away without a lockup period. The company chose not to have a traditional IPO for a pragmatic reason: It didn’t need the cash, Slack Chief Executive Officer Stewart Butterfield said Thursday.
Bloomberg Beta, the venture capital arm of Bloomberg LP, is an investor in Slack.
(Updates shares in first two paragraphs.)
To contact the reporter on this story: Janet Freund in New York at jfreund11@bloomberg.net
To contact the editor responsible for this story: Catherine Larkin at clarkin4@bloomberg.net
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
U.S. markets regulators reach deal on Dodd-Frank swaps capital rules
By Michelle Price and Katanga Johnson
WASHINGTON (Reuters) - U.S. markets regulators on Friday unveiled an agreement on how much capital and margin firms must hold when trading swaps based on securities, finalizing a key piece of the 2010 Dodd-Frank law introduced following the 2007-09 financial crisis.
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) agreed to fend off a regulatory overlap that would have drastically increased the capital burden for many firms already operating under CFTC rules, the regulators said.
The agreement underscores an unusual degree of harmonization between the two U.S. markets watchdogs and comes amid a broader push by two appointees of U.S. President Donald Trump - SEC Chairman Jay Clayton and CFTC Chairman Christopher Giancarlo - to coordinate more closely on policy and enforcement matters.
Friday's announcement was a relief for the industry, which had worried the SEC's final rule could potentially put many firms out of business.
"Moving these rules is a positive development in getting a big piece of Dodd Frank Title VII over the finish line, completing the mandate that Congress gave us," Republican Commissioner Hester Peirce, who led the SEC rule-writing effort, said in an interview.
Title VII of Dodd-Frank handed the CFTC oversight of the vast majority of the U.S. swaps market, including interest rate and foreign exchange swaps, but gave the SEC oversight of the small slice of the swaps market based on individual securities.
Swaps are a type of private derivative contract between two parties, typically banks, that allow investors to hedge the risk of future asset price movements, such as interest rate rises.
Dodd-Frank aims to make the swaps market safer by requiring dealers to hold sufficient capital and margin against swaps, and by pushing more swaps through clearing houses which sit in between trades to guarantee payment in case either party defaults. The CFTC implemented most of its post-crisis rules by 2014 but the SEC has lagged far behind.
The SEC first proposed capital and margin rules for swaps in 2012 but until Friday had failed to finalize them. In a move that caught the industry by surprise, the Republican-led SEC last year said it would try to finalize its Dodd-Frank regime.
Over the past few months, the agencies have worked together to address problems with the SEC proposal.
The SEC rule would have subjected swap trading firms already registered and regulated by the CFTC to an additional capital requirement.
Friday's compromise would place the overwhelming majority of uncleared swaps trading by CFTC-registered firms under the CFTC's capital rules, avoiding the additional SEC charge. The new rules will not become effective for at least 18 months.
Robert Jackson, the SEC's lone Democratic commissioner, voted against the final rule because it allows firms to use internal risk models to calculate the financial cushion for their swaps.
"Dealers maximize their profits by flirting with failure, and their risk models can be expected to reflect those incentives," Jackson said in a statement.
Brian Quintenz, the Republican CFTC commissioner who led the project at the agency, told Reuters the regulators are also discussing allowing trading firms more ways to reduce margin requirements by offsetting uncleared swap hedges, a process known as "portfolio margining."
"Having a good regime in this area can unleash a massive amount of capital in the real economy in a way that is very respectful of risk," Quintenz said.
(Reporting by Michelle Price and Katanga Johnson in Washington; Additional reporting by Pete Schroeder in Washington; Editing by Richard Chang and Matthew Lewis) |
Is MKS Instruments, Inc.'s (NASDAQ:MKSI) Balance Sheet A Threat To Its Future?
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Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as MKS Instruments, Inc. (NASDAQ:MKSI) with a market-capitalization of US$4.1b, rarely draw their attention. Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. Let’s take a look at MKSI’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto MKSI here.
View our latest analysis for MKS Instruments
MKSI's debt levels surged from US$347m to US$1.1b over the last 12 months , which includes long-term debt. With this increase in debt, MKSI currently has US$462m remaining in cash and short-term investments to keep the business going. Moreover, MKSI has produced US$370m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 35%, meaning that MKSI’s operating cash is sufficient to cover its debt.
Looking at MKSI’s US$297m in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of US$1.4b, leading to a 4.59x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. However, a ratio greater than 3x may be considered by some to be quite high, however this is not necessarily a negative for the company.
With a debt-to-equity ratio of 51%, MKSI can be considered as an above-average leveraged company. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can test if MKSI’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For MKSI, the ratio of 30.49x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
Although MKSI’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around MKSI's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure MKSI has company-specific issues impacting its capital structure decisions. I suggest you continue to research MKS Instruments to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MKSI’s future growth? Take a look at ourfree research report of analyst consensusfor MKSI’s outlook.
2. Valuation: What is MKSI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether MKSI is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
These Fundamentals Make Opsens Inc. (TSE:OPS) Truly Worth Looking At
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I've been keeping an eye on Opsens Inc. (TSE:OPS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe OPS has a lot to offer. Basically, it is a company with robust financial health as well as a excellent future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the fullreport on Opsens here.
OPS's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. With a debt-to-equity ratio of 4.5%, OPS’s debt level is relatively low. This means the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Opsens, there are three fundamental factors you should further examine:
1. Historical Performance: What has OPS's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Valuation: What is OPS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether OPS is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of OPS? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Mitsubishi Motors shareholders approve ouster of Ghosn
TOKYO (AP) — Mitsubishi Motors Corp. shareholders approved on Friday the ouster of Carlos Ghosn, who was pivotal in the Japanese automaker's three-way partnership with Nissan and Renault until he was arrested on financial misconduct charges last year. The vote took place in a 2-hour general meeting of shareholders at a Tokyo hotel. Nissan Motor Co. owns 34% of Mitsubishi Motors. Osamu Masuko, who was reappointed chairman, promised to strengthen governance and transparency and monitor wrongdoing. More outsiders will check executive appointments and compensation, he said. Nissan shareholders held an extraordinary shareholders' meeting in April to oust Ghosn as chairman. He resigned from French alliance partner Renault SA. Nissan shareholders also approved the appointment of Renault Chairman Jean-Dominique Senard to replace Ghosn. Renault owns 43% of Nissan. Nissan, based in the port city of Yokohama, is holding a general shareholders' meeting next week to approve other measures, including setting up committees to strengthen governance. Nissan said late Thursday two Renault executives will be on the committees. Renault earlier said it would abstain in that vote, and the greater representation promised on the committees may help with gaining Renault's approval. Renault said in a statement that it welcomed Nissan's decision but did not say how it planned to vote. "The agreement reached on Renault's presence in Nissan's new governance confirms the spirit of dialogue and mutual respect that exists within the alliance," it said. Some analysts suggest a deepening rift between Renault and Nissan after a planned merger between Renault and Fiat Chrysler fell through earlier this month. Nissan expressed reservations about immediately joining the merger. Masuko told shareholders the auto industry faced challenges because of the costs of advancements such as emissions standards and self-driving technology. Story continues He said the Tokyo-based automaker will pursue focus over expansion, repeatedly highlighting the company motto "small but beautiful." He also stressed the importance of auto alliances. "We want to be a profitable company even if smaller in scale," he told shareholders. One Mitsubishi Motors shareholder expressed anger over the Ghosn scandal. But most of the questions were about new models and market strategy. Ghosn, who led Nissan for two decades, saving it from near-bankruptcy, had served as chairman at Nissan, Renault and Mitsubishi, and was long a revered figure in the industry. He has been charged with falsifying financial reports in underreporting retirement compensation and with breach of trust in having Nissan shoulder investment losses and in diverting Nissan money for personal gain. Ghosn says he is innocent. ___ Follow Yuri Kageyama on Twitter https://twitter.com/yurikageyama On Instagram https://www.instagram.com/yurikageyama/?hl=en ___ This story has been corrected to show that it was Nissan instead of Mitsubishi shareholders in 5th paragraph. |
Iran Tensions Are Escalating—And the U.S. Doesn't Have a Permanent Defense Secretary
It’s a difficult time for the Pentagon to be without a permanent U.S. defense secretary.
The Trump administration is grappling with an escalating crisis with Iran, an unusual and controversial deployment of troops to the U.S.-Mexico border, the nearly two-decade-old war in Afghanistan and stalled talks with North Korea over its nuclear weapons program.
Amid all that, and more, acting Defense Secretary Patrick Shanahan stepped down this week and the man tapped to replace him on an interim basis appears to face legal hurdles that could initially prevent him from serving more than about six more weeks. It’s an unusual level of uncertainty for one of the most important jobs in the administration.
“This is a very difficult time. With everything going on in Iran and all the provocations and counteractions, and to have no Secretary of Defense at this time is appalling,” said Democratic Sen. Chuck Schumer of New York. “It shows the chaos in this administration. They have so many empty positions, revolving doors, in the most sensitive of security positions.”
Shanahan and his planned replacement, Army Secretary Mark Esper, have been attending White House and other meetings, including sessions to debate how the military should respond to Iran’s shoot-down of an American drone.
Esper is slated to take over as acting defense secretary at midnight on Sunday, and then head out Tuesday to a meeting of NATO defense ministers. There it will be critical for Esper to convince allies that he is now in charge, and that the U.S. national security leadership is stable and able to make decisions when faced with escalating threats from Iran, amid questions from a wary Congress.
Meanwhile, inside the Pentagon, lawyers are debating how to get Esper through what will be a difficult legal and Congressional confirmation process. Defense officials said Thursday that so far they don’t yet have a clear way forward.
The key problem is that Trump never formally nominated Shanahan for the defense job. He announced his intention to do so, but as the months went on it never happened, and officials repeatedly said the vetting was dragging on. On Monday, Shanahan stepped down saying he wanted to spare his family as details of domestic problems linked to his messy divorce nearly a decade ago became public.
Trump immediately named Esper as the new acting secretary, but because of limitations laid out in court decisions and legislation governing how top level vacancies are filled, he will only be allowed to serve for about six weeks in that temporary capacity.
Law prohibits Esper from being nominated for the job while also serving as the acting secretary. If he is nominated, he’ll have to step down and move to another job until the Senate votes on his confirmation. And anyone chosen to fill in temporarily — even for a short time while the confirmation process goes on — will have limited authorities and won’t have all of the decision-making power that a defense secretary needs when his nation is at war in several countries and conducting major military operations in dozens of others.
Normally, senior leaders can be “acting” for 210 days, but because Shanahan was never nominated the clock on Esper started ticking on January 1, when previous Defense Secretary Jim Mattis resigned. That would force Esper out of the acting role by July 30.
Adding to the problem, is that even if Trump wants to nominate Esper, he’ll have to come up with someone to fill the job, also in an acting capacity, for an undetermined amount of time. Because Trump never nominated anyone to replace Shanahan as deputy defense secretary, which was his previous job, there is no one to easily step up and fill in as acting secretary during that confirmation process.
While lawmakers have expressed initial support for Esper, who is well known on the Hill and previously served on committees as legislative staff, there is no guarantee he’ll get a quick approval.
As a former executive at defense contractorRaytheon, Esper may have to excuse himself from decisions involving the company. And that could include sensitive, top level negotiations with Turkey over its decision to buy a Russian missile defense system, and America’s counter offer of the Raytheon-made Patriot surface-to-air weapon.
Lawmakers have also expressed impatience with the large number of acting executives in the Trump administration.
Under Trump at least 22 of the 42 people in top Cabinet jobs have been acting, or just over half.
In contrast, data compiled by incoming Yale political science professor Christina Kinane, suggests that from 1977 through mid-April of this year — the administrations of President Jimmy Carter through the first half of Trump’s — 266 individuals held Cabinet posts. Seventy-nine of them held their jobs on an acting basis, or 3 in 10.
Trump has said he likes naming acting officials, telling reporters in January, “It gives me more flexibility.”
The practice lets Trump quickly, if temporarily, install allies in important positions while circumventing the Senate confirmation process, which can be risky with Republicans running the chamber by a slim 53-47 margin.
But another explanation is that under Trump, the process of filling jobs has been slow and riddled with missteps.
Trump has withdrawn 63 nominees so far, doubling the 31 Obama retracted at this point in his first term, according to the nonpartisan Partnership for Public Service, which studies ways to improve government effectiveness. He’s also decided against nominating some candidates after realizing the GOP-led Senate would reject them, including two would-be picks for the Federal Reserve: businessman Herman Cain and conservative commentator Stephen Moore.
In addition, Trump’s 568 nominations during his first year in office were more than 100 fewer than Obama submitted during that period, partnership figures show.
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Get up to speed on your morning commute withFortune’sCEO Dailynewsletter. |
Please Apple, don't kill 3D Touch on new iPhones
Unpopular opinion: I really like3D Touchon iPhone.
Apple introduced the pressure-sensitive display technology on theiPhone 6Sin 2015 as an evolution of multi-touch. Apple executives gushed about how pressingharderon the screen would add a new dimension to tapping and swiping.
In light ofmultiple reportsthat claim Apple's going to kill 3D Touch onallthree of this year's iPhones, I must confess that I don't want to see it go into the night.
I don't care if most people have no clue what 3D Touch is or that it even exists on their iPhones. I also don't care that people think it's unnecessary when a long press suffices.Read more...
More aboutApple,Iphone,Ios,3d Touch, andIos 13 |
Why Opsens Inc. (TSE:OPS) Is An Attractive Investment To Consider
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Opsens Inc. (TSE:OPS) due to its excellent fundamentals in more than one area. OPS is a company with impressive financial health as well as a excellent future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on Opsens here.
OPS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. OPS’s debt-to-equity ratio stands at 4.5%, which means its debt level is rather small. Investors’ risk associated with debt is very low and the company has plenty of headroom to grow debt in the future, should the need arise.
For Opsens, I've compiled three essential aspects you should look at:
1. Historical Performance: What has OPS's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Valuation: What is OPS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether OPS is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of OPS? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Will Lennar (LEN) Be Able to Top Q2 Earnings Estimates?
Lennar CorporationLEN is slated to report results for second-quarter fiscal 2019 (ended May 31) before the opening bell on Jun 25.In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 1.3% and 5.3%, respectively. Nonetheless, this Miami-based homebuilder surpassed earnings expectations in four of the five trailing quarters.How are Estimates Faring?Let’s take a look at the estimate revision trend in order to get a clear picture of what analysts are thinking about the company prior to the earnings release.For the quarter to be reported, the Zacks Consensus Estimate has remained unchanged at $1.13 per share over the past 60 days. This indicates a decrease of 28.5% from the year-ago earnings of $1.58 per share. Revenues are also expected to decrease 6.3% year over year to $5.11 billion.
Let’s see how things are shaping up for this announcement.Key FactorsLennar is expected to report improved quarterly results than the fiscal first quarter, given lower mortgage rates, rebounding western markets and ongoing demand for affordable housing by multiple demographic groups. Notably, as California home sales are trending in a positive direction, Lennar is expected to benefit from higher volume and average selling prices.Homebuilding: Robust backlog position and increased traffic on the back of improved consumer confidence, wage growth as well as lower mortgage rates are expected to be conducive to the company’s revenues.It expects deliveries in the to-be-reported quarter within 11,700-12,000 units compared with 12,095 units reported a year ago. Average sales price is expected between 400,000 and 405,000 versus $413,000 in the year-ago period and $410,000 in the last reported quarter.The company expects new orders in the 14,000-14,300 range compared with 14,440 in second-quarter fiscal 2018.For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s Homebuilding segment revenues (accounting for 93.7% of total revenues) is pegged at $4,803 million, suggesting a decrease from $5,064 million in the year-ago period but an increase from $3,624 million in the last reported quarter. This sequential improvement is expected to be driven by higher average selling prices and deliveries. Lennar is expected to gain from its dynamic pricing model that will enable it to price homes according to the current market conditions as they evolve.From the margins perspective, Lennar expects fiscal second-quarter gross margin in the range of 20-20.5% (compared with 20.1% in the fiscal first quarter). Increase in the average sales price is expected to be partly offset by higher construction costs.Indeed, labor shortages, higher construction costs, limited land availability, and increases in new and existing home sale prices have been hurting the homebuilding industry for quite some time now. Lennar is not an exception in this regard. Higher construction and land costs have been creating pressure on the company’s gross margin over the last few quarters.Nonetheless, Lennar remains focused on continued improvement in the SG&A (selling, general and administrative) line, owing to operating leverage and investments in technology. SG&A expenses, as a percentage of home sales, are estimated within 8.5-8.6% compared with 8.7% a year ago and 9.5% in the fiscal first quarter.For theFinancial Servicessegment, the consensus estimate for the segment’s revenues is pegged at $207 million, implying a decrease from $232 million in the year-ago period but an increase from $143 million in first-quarter fiscal 2019.What the Zacks Model UnveilsLennar does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — to increase the odds of an earnings beat.Earnings ESP:Lennar has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank:Currently, it carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficultNote that we caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Stocks With Favorable CombinationHere are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.Acuity Brands, Inc. AYI has an Earnings ESP of +1.82% and a Zacks Rank #3.Jacobs Engineering Group Inc. JEC has an Earnings ESP of +2.52% and holds a Zacks Rank #3.Quanex Building Products Corporation NX has an Earnings ESP of +2.78% and a Zacks Rank #1.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Click to get this free reportQuanex Building Products Corporation (NX) : Free Stock Analysis ReportAcuity Brands Inc (AYI) : Free Stock Analysis ReportJacobs Engineering Group Inc. (JEC) : Free Stock Analysis ReportLennar Corporation (LEN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
19% of World Population Bought Crypto Before 2019: Kaspersky Report
A new survey byMoscow-basedcybersecurityfirmKaspersky Labintroducedon June 17th revealed that 19% of people globally have purchasedcryptocurrency.
Thesurvey, titled “The Kaspersky Cryptocurrency Report 2019,” was carried out in October and November 2018, with a total of 13,434 respondents in 22 countries.
According to the report, 81% of global population have never purchased cryptocurrencies, while only 10% of respondents said they “fully understand how cryptocurrencies work.”
Meanwhile, just 14% of those who haven’t ever used cryptocurrencies would like to do so in the future, the report notes.
Key findings of The Kaspersky Cryptocurrency Report 2019. Source:Kaspersky Labs
Among major reasons why global crypto investors have stopped using cryptocurrencies, majority of respondents cited its “too high”volatility, implying that the need of stability before they are prepared to use them.
While volatility factor accounted for 31%, other important reasons included loss of money in the bear market, as well as a belief that crypto “is not profitable anymore,” with both factors equally amounted to 23% among the respondents.
With that, 22% of respondents claimed that they stopped using cryptos because they are not backed with real assets. Additionally,hacksandfraudvulnerabilities weren’t the biggest reasons for global crypto users becoming disillusioned, with the respondents citing those factors accounted for only 19% and 15%, respectively.
Reasons why people stopped using cryptos. Source:Kaspersky Labs
In apress releaseaccompanying the report, Kaspersky team noted that the adoption of crypto industry by global consumers have been slowing down due to lack a proper understanding of how cryptocurrencies work.
Previously, another surveyfoundthat almost 12% ofAmericancrypto crypto holders are long-term investors
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Bitmain plans to raise $300-$500 million via U.S. IPO later this year – Report
Cryptocurrency mining giant Bitmain Technologies is planning on conducting an initial public offering (IPO) in the U.S., BloombergreportedFriday, citing “people with knowledge of the matter.”
The company aims to raise $300-$500 million from the offering, which could launch “as soon as the second half of this year,” according to the report.
Bitmain is reportedly already in discussions with advisers for the IPO and could file documents with the U.S. Securities and Exchange Commission next month. Still, “deliberations about an IPO of Bitmain are at an early stage, and details of the offering could change,” per the report.
The mining giant wasinitiallylooking to launch an IPO in Hong Kong, but the applicationlapsedearlier this year.Bitmain rival Canaan was also reportedlylookingat a U.S. listing after its Hong Kong Stock Exchange application lapsed late last year, but it seems to be behind schedule. |
1 in 6 ER visits or hospital stays triggers 'surprise' bill
WASHINGTON (AP) — Roughly one in every six times someone is taken to an emergency room or checks in to the hospital, the treatment is followed by a "surprise" medical bill, according to a study released Thursday. And depending on where you live, the odds can be much higher. The report from the nonpartisan Kaiser Family Foundation finds that millions of people with what's considered solid coverage from large employers are nonetheless exposed to "out-of-network" charges that can amount to thousands of dollars. It comes as congressional lawmakers of both parties and the Trump administration move to close the loophole, with a Senate panel scheduled to vote on legislation next week. A patient's odds of getting a surprise bill vary greatly depending on the state he or she lives in. Texas seems like a bit of a gamble, with 27% of emergency room visits and 38% of in-network hospital stays triggering at least one such bill. Minnesota looks safer, with odds of 2% and 3%, respectively. Researcher Karen Pollitz of the Kaiser Foundation said the reasons for such wide differences are not entirely clear, but seem to be related to the breadth of hospital and doctor networks in each state, and the ways those networks are designed. Patients in New York, Florida, New Jersey and Kansas were also more likely to get surprise bills. Among the other states where it was less likely were South Dakota, Nebraska, Maine and Mississippi. Averaging the results nationwide, 18 percent of emergency room visits and 16 percent of stays at an in-network hospital triggered a surprise bill for patients with health insurance through a large employer, the study estimated. That illustrates the need for Congress to get involved, said Pollitz, since large-employer plans are regulated by federal law and surprise billing protections already enacted by states like New York do not apply to them. "This is a prominent problem affecting patients, and it is beyond the reach of state laws to fix, and it is by definition beyond the ability of patients to fix on their own," she said. Next Wednesday, the Senate Health, Education, Labor and Pensions committee plans to vote on bipartisan legislation that would limit what patients can be charged to their in-network deductibles and copays. The bill from Sens. Lamar Alexander, R-Tenn., and Patty Murray, D-Wash., would require insurers to pay out-of-network doctors and hospitals the median — or midpoint — rate paid to in-network providers. The House Energy and Commerce committee is working on similar legislation. President Donald Trump has said he wants to sign a bill. Story continues Major industry lobbies are going to battle over the issue. Insurers and employers generally favor the approach the Alexander-Murray bill takes on how to pay out-of-network providers, using an in-network rate as the reference point. But hospitals and doctors instead want disputed bills to go to arbitration. New York has an arbitration system and a recent study found it has worked well. However, some lawmakers are concerned that on a national scale it may lead to a costly new bureaucracy. Surprise bills can come about in different ways. In an emergency, a patient can wind up at a hospital that's not in their insurer's network. Even at an in-network hospital, emergency physicians or anesthesiologists may not have a contract with the patient's insurer. For a scheduled surgery at an in-network hospital, not all the doctors may be in the patients' plan. Bills can amount to tens of thousands of dollars and hit patients and their families when they are most vulnerable. Often patients are able to negotiate lower charges by working with their insurers and the medical provider. But the process usually takes months, adding stress and anxiety. When it doesn't work out bills can get sent to collection agencies. The Kaiser estimates are based on insurance claims from 2017 for nearly 19 million people, or more than 1 in 5 of those covered by large employers. The claims details came from an IBM Health Analytics database that contains information provided by large-employer plans. Researchers excluded patients 65 or older, most of whom are covered by Medicare. The Alexander-Murray legislation also includes other ideas aimed at lowering medical costs by promoting competition to brand-name drugs, blocking health industry contracting practices can bid up prices, and requiring greater disclosure of information. A public health section of the bill would authorize a national campaign to increase awareness of the role vaccines play in preventing disease. View comments |
ContraVir Rebounds From Record Low On Positive FDA Feedback
ContraVir Pharmaceuticals Inc(NASDAQ:CTRV) shares have been highly volatile of late, with the promise offered by its non-alcoholic steatohepatitis drug cushioning any downside for the stock.
The shares were making a strong upward move Friday from the all-time low reached in the previous trading session.
What Happened
ContraVir, a thinly traded nanocap biotech, said Thursday after the close the FDA has given it positive feedback in response to its pre-IND meeting about its NASH pipeline asset CRV431.
The positive feedback pertained to preclinical data for CRV431, with the regulatory body agreeing with ContraVir's proposed plan for further preclinical studies to support the development of the asset. The FDA also supported the study design for the NASH IND opening study, the company said.
"We are pleased with the FDA's positive feedback on the preclinical work we've completed to-date, as well their feedback on additional planned studies that will support an IND submission for CRV431 in NASH," ContraVir CEO Robert Foster said in a statement.
In addition to NASH, the company also has an existing IND for CRV431 in the treatment of hepatitis B virus, or HBV.
An Eventful June
ContraVir effected a 1-for-70 reverse stock split in early June.
Later, on June 6, the companyreportedpreclinical data for CRV431 that showed a significant reduction in the extent of fibrosis in a second animal model of liver fibrosis, which led to a roughly 42% jump in the stock.
The stock also received support from acompany releaseon the publication of a research article on CRV431's effectiveness in treating HBV in animal models. This sent the stock soaring about 36% on June 11.
Most recently, ContaVir pulled back by about 44% to $5.30 on June 18 on the news of a common stock offering.
The positive regulatory feedback on CRV431 has once again lent support to the stock.
ContraVir shares were rallying by 28.37% to $5.55 at the time of publication Friday.
Related Links:
ContraVir Moves Higher After NASH Drug Shows 100% Efficacy In Fibrosis Prevention
The Daily Biotech Pulse: ContraVir's Volatile Ride Continues, Late-Stage Disappointment For Exelixis, Regeneron-Sanofi Breathe Easy
Photo byNephron/Wikimedia.
See more from Benzinga
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• ContraVir Moves Higher After NASH Drug Shows 100% Efficacy In Fibrosis Prevention
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Jordan Bone gets joyous reaction after getting drafted
Former Tennessee guard Jordan Bone went from despondent to joyous in a matter of seconds. As the NBA draft was coming to an end Thursday, Bone sat at his draft party waiting to be picked. It reached the point where one of the members at the draft party started to give Bone’s concession speech. There’s talk of “being hurt right now” that Bone didn’t get selected. Then, this happens. The emotion here is insane. Jordan Bone 57th pick in the draft🤞🏾 S/O to @1st_blackpope @JordanBone23 @UTKnoxville @espn pic.twitter.com/nfOqL9iohE — NextUpRecruits (@NextUpRecruits) June 21, 2019 Someone in the crowd still watching the NBA draft shouts. Suddenly, Bone is being mobbed by friends and family members. Their cries of elation go on for quite some time. Turns out, Bone did get drafted. The New Orleans Pelicans selected him with the 57th pick, and then traded him to the Detroit Pistons. Bone didn’t even seem to know at the time. You can see him look up at the screen just before he gets tackled by everyone else in the room. Bone played a big role in helping Tennessee reach No. 1 in the rankings during the college basketball season. The junior averaged 13.5 points and 5.8 assists. Getting drafted wasn’t a certainty, but Bone still took the risk. He kept his name in the draft, forgoing his college eligibility. Though he waited longer than he would have liked, that risk paid off. Now, Bone will have to focus on making the Pistons, and showing the team he deserves playing time. No matter what happens, Bone will have some passionate, dedicated fans rooting him on. Story continues ——— Chris Cwik is a writer for Yahoo Sports. Have a tip? Email him at christophercwik@yahoo.com or follow him on Twitter! Follow @Chris_Cwik More from Yahoo Sports: Zion breaks down next to mom after being selected No. 1 Why the No. 4 pick won't be a Laker but still wore team's hat Minor league team loses on outfielder's mindless flub Shaq's son 'could've died' from heart defect |
Speaker of Georgian parliament resigns after anti-Russian protests injure 240
Demonstrators run from police tear gas after a Russian MP's appearance in the Georgian parliament sparked unrest - AP The speaker of Georgia's parliament has resigned after 240 people were injured in protests overnight against Russian influence. Irakli Kobakhidze, who was in Azerbaijan when Russian MP Sergei Gavrilov took his chair to head an inter-parliamentary session on Orthodox Christianity on Thursday, has stepped down to demonstrate “accountability to society,” the ruling Georgian Dream party said. This fulfils a key demand of the opposition, which has also called for early elections and sweeping reforms and was planning another protest in the capital Tbilisi on Friday evening. A group of young men, many of them in masks, were filmed overturning a car during the day. Georgian Dream's policy of keeping good relations with its northern neighbour has been controversial in Georgia, which has a population of less than 4 million and sits between between Russia and Turkey. Georgia lost its South Ossetia region in a five-day Russian invasion in 2008. Moscow also props up the Georgian breakaway republic of Abkhazia, leaving one-fifth of the country outside Tblisi's control. The Georgian government has attempted to keep decent relations with Moscow despite its backing for two breakaway republics Credit: Vano Shlamov/AFP Vladimir Putin's spokesman called the protests a “Russophobic provocation” and said the Kremlin was “extremely concerned” as many Russian tourists visit Georgia. Tensions in the devout country have already been running high ahead of the first-ever LGBTQ pride parade in Tbilisi this week. Mr Gavrilov's appearance sparked arguments that saw politicians throw water at each other and block his return to the speaker's chair on Thursday. He voted with the majority of the Russian parliament to recognise the two breakaway republics' independence in 2008 and was rumoured to have fought in Abkhazia, which he has denied. Russian MP Sergei Gavrilov speaks in Moscow on Friday Credit: Yuri Kadobnov/AFP Several thousand protesters had gathered outside parliament by Thursday evening, many of them chanting slogans against Mr Putin and carrying signs reading “Russia is an occupier”. Some demonstrators later tried to storm the building but were pushed back. Story continues “The government invited our declared enemy, and he was sitting in parliament without any problem,” protester Gabriel Chubinidze, a university student, told The Telegraph. Police fired tear gas, rubber bullets and water cannons to break up the protests in the wee hours of Friday morning, detaining more than 150 people. Some demonstrators reportedly burned Georgian Dream flags in the party headquarters. One-hundred-and-sixty protesters and 80 police officers were injured in the clashes, and 102 people were still in hospital on Friday, including one in grave condition, the health ministry said. Two people underwent surgery to have eyes removed, a Tbilisi hospital said. One of the patients was reportedly hit with a rubber bullet. More than 50 people were jailed on Friday on charges of resisting police and hooliganism, a Georgian reporter told The Telegraph from court. Riot police cracked down on the protest with tear gas, rubber bullets and a water cannon Credit: Irakli Gedenidze/Reuters Human Rights Watch said Georgian police fired tear gas and rubber bullets without warning and called on officers to respect freedom of assembly and resort to violence only as a last resort. The Georgian public defender's office said it was investigating allegations of “abuse of power” by police. Nina Jankowicz, a fellow at the Kennan Institute in Washington DC who was visiting Tbilisi, said the protest was peaceful. She said the police actions looked “like a disproportionate response to what was going on and escalated quickly”. Mr Chubinidze blamed the violence on police and a small group of aggressive protesters. Protesters help a man wounded in clashes with police Credit: Zurab Tsertsvadze/AP Mr Gavrilov claimed that the unrest was prearranged by “radical liberal anti-patriotic forces” and coordinated by American “handlers”. But Mr Chubinidze said demonstrators came of their own free will. “The whole of Georgia was shocked when we heard about this Russian deputy story,” he said. |
Here's Why Cummins (CMI) is a Great Momentum Stock to Buy
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look atCummins (CMI), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cummins currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for CMI that show why this engine maker shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CMI, shares are up 1.18% over the past week while the Zacks Automotive - Internal Combustion Engines industry is up 0.89% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.76% compares favorably with the industry's 3.88% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Cummins have increased 10.01% over the past quarter, and have gained 26.89% in the last year. On the other hand, the S&P 500 has only moved 5.48% and 8.71%, respectively.
Investors should also take note of CMI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, CMI is averaging 1,113,200 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CMI.
Over the past two months, 12 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CMI's consensus estimate, increasing from $15.48 to $16.23 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been 3 downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that CMI is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Cummins on your short list.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCummins Inc. (CMI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here's Why Momentum Investors Will Love FNF Group (FNF)
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look atFNF Group (FNF), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. FNF Group currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for FNF that show why this provider of title insurance and mortgage services shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For FNF, shares are up 0.13% over the past week while the Zacks Insurance - Property and Casualty industry is up 0.16% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.88% compares favorably with the industry's 3.72% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of FNF Group have risen 11.37%, and are up 10.95% in the last year. On the other hand, the S&P 500 has only moved 5.48% and 8.71%, respectively.
Investors should also take note of FNF's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, FNF is averaging 926,300 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with FNF.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost FNF's consensus estimate, increasing from $2.73 to $2.76 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that FNF is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep FNF Group on your short list.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFidelity National Financial, Inc. (FNF) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Oxfam Trials Delivery of Disaster Relief Using Ethereum Stablecoin DAI
Oxfam International, a U.K.-based non-profit with a global reach, just spent a month testing MakerDAO’s stablecoin DAI as a vehicle for helping disaster victims.
The pilot project in the South Pacific Ocean nation of Vanuatu was conducted in partnership with Australian tech firm Sempo and ethereum startup ConsenSys, Australian news outlet Mickyreports.
Vanuatu routinely faces a high risk of tsunamis, cyclones and volcanic eruptions, while poverty is high, with around 40 percent of the population getting by on less than $4 a day, according to a World Bankreportfrom last year citing 2010 data.
Related:Coinbase Adds DAI as First Stablecoin in Crypto Exchange’s Earn Program
In the pilot, named the UnBlocked Cash, 200 residents in the villages of Pango and Mele Maat on the island of Efate were given tap-and-pay cards, each loaded with about 4,000 vatu ($50) in DAI, according to Micky. The cards could be used for payments across a network of local stores and schools, with 32 vendors in total.
The vendors, in turn, were provided with Android smartphones with an app allowing them to accept such payments, being able to redeem DAI – which is backed by U.S. dollars at a 1:1 ratio – for fiat currency via Sempo or at other crypto exchanges if they so choose.
Sempo co-founder Nick Williams told Micky:
“As far as we know this is the first time an NGO has used a stablecoin to provide aid anywhere. This is not a one-off pilot. We believe that using a stablecoin to allow the unbanked to access finance will completely change the way aid runs.”
Related:How MakerDAO Works: A Video Explainer
Oxfam has previously distributed help to Vanuatu villagers using cash, but the time taken for ID checks and bank visits was an obstacle, the charity representative said. Onboarding a new user for cash aid took around an hour, signing up for a DAI card takes six minutes, Micky wrote. Plus, it made the whole process more transparent.
“Both donors and NGOs struggle with transparency and the way aid money is used,” Sandra Hart, the Unblocked Cash lead at Oxfam, told the publication. Using a stablecoin brings in end-to-end transparency “ensuring that the people who receive funds are the ones that need it,” she said.
Last year, Sempo conducted a series of similar fund transfer tests in Beirut and Akkar in Lebanon, Iraqi Kurdistan and Athens, distributing DAI and a custom ethereum ERC-20 token. The trials showed that the blockchain tech doesn’t change the main patterns for the use of humanitarian aid and doesn’t really help preventing fraud, but serves instead “as a way to maximize the likelihood that honest systems remain honest,” Sempo wrote in ablog post.
Blockchain tech has increasingly been garnering the attention of the international charity bodies. For example, the United Nations World Food Programme (WFP) last year reported the successful use of the tech for distributing aid to the Syrian refugees in a refugee camp in Jordan.
The project, named Building Blocks, helped reaching 106,000 refugees in Jordan every month, saving WFP around $40,000 a month in transfer fees, the WFP’s director of innovation and change Robert Opp said last September. HetoldCoinDesk the organization is going to utilize the tech also for tracking food deliveries in East Africa and in a educational program for Syrian refugee women in Jordan.
Woman shopping in Vanuatuimage via Shutterstock
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Minneapolis Fed President Kashkari advocated for 50 basis point rate cut
Federal Reserve Bank of Minneapolis President Neel Kashkari said Friday that he advocated for cutting rates by 50 basis points in Wednesday’s policysetting committee.
In ablog post, Kashkari wrote that an “aggressive policy action” was necessary to improve inflation expectations. The Fed has undershot its 2% inflation target since adopting that goal in 2012.
Kashkari said cutting rates may not even be enough, suggesting that the Fed also commit to not raising rates until core inflation reaches the Fed’s target.
“Given that it has taken years for the markets to learn our current reaction function, I don’t believe a rate cut or two in isolation will do much to boost inflation expectations,” Kashkari wrote.
The Feddid not move on rates on Wednesday, electing to keep the benchmark interest rate in the target range of 2.25% to 2.5%.
Only one voting member of the Federal Open Market Committee dissented against that decision: St. Louis Fed President James Bullard. Bullardwrote Fridaythat his call for lower rates was also related to undershooting inflation.
“Even if a sharper-than-expected slowdown does not materialize, a rate cut would help promote a more rapid return of inflation and inflation expectations to target,” Bullard wrote.
Kashkari is not a voting member of this year’s FOMC. Since becoming president of the Minneapolis Fed in January 2016, he has advocated against interest rate increases. During his time on the 2017 FOMC, he voted against three decisions to raise rates.
—
Brian Cheung is a reporter covering the banking industry and the intersection of finance and policy for Yahoo Finance. You can follow him on Twitter@bcheungz.
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Facebook created our culture of echo chambers—and it killed the one thing that could fix it
This week Jürgen Habermas , one of the world’s most famous living philosophers, turned 90 . A week before, Congress hosted yet another hearing investigating tech platforms Facebook, Google, Amazon, and Apple. What does one event have to do with the other? Meet all the Democratic candidates in the crowded 2020 race In 2006, long before social media echo chambers were a worldwide phenomenon, Habermas warned that “the rise of millions of fragmented chat rooms across the world” would lead to “a huge number of isolated issue publics”—micro public spheres that threaten the shared national conversations that are essential to democracy. Habermas’s philosophies and the antitrust investigations both point to a fundamental issue we face today: the concept of a public sphere, and what tech companies and the government can and should do to protect democracy. Facebook, like Twitter and Google, represents the modern version of the public sphere that Habermas and other democracy theorists have called for. With more of our lives lived online , we’ve stopped prioritizing physical spaces, and therefore lost shared spaces spaces for public discourse. Indians can worry less as the US denies capping H-1B visa quota The internet has largely satisfied a human desire for connection, but it doesn’t necessarily cultivate a democratic exchange of information. Democratic discourse depends on a shared understanding of what matters, what the facts are, and which sources and speakers are reliable. Trend setting Before its untimely dismissal , Facebook’s “Trending” feature lived in the small white box on the upper right-hand corner of your home page, allegedly listing the news stories most widely shared and discussed across Facebook’s ecosystem. Although problematic in its application , this tool had the potential for an entirely citizen-driven solution to an age-old problem of the public sphere: determining what issues deserve our attention, and how much of it. Features like Trending in theory help support and maintain the social media space as a venue for public conversation in democratic discourse—if platforms can stick to implementing them the way they were initially advertised. Story continues Every day in newsrooms around the world, editors decide what is newsworthy, using their judgment to determine what we end up reading, hearing, and seeing. Traditional media sources have struggled with this problem for centuries: What, exactly, is newsworthy? What do people actually care about? Social media is now a strong indicator in those decisions. Trending, similar to features on Twitter, Google News, and other platforms, was presumably designed as a tool to automate this minefield of a process, capturing trends at a broad scale and thus offering a picture of what citizens themselves consider to be their most pressing concerns and interests. With data from a monthly active user pool of 2.38 billion people worldwide , Facebook’s Trending tool can still help answer those questions, by directly capturing the common interests of the public without editorial filters. It just needs to be fixed. Trending troubles Trending as a concept is an antithesis to our current echo-chamber media landscape, in which users are primarily shown news that is algorithmically tailored to their interests. This sort of customized news access has led to increased political and social division. When you only see news that already confirms (echoes) your biases, you lose the opportunity to engage thoughtfully with new or opposing ideas. Society misses out on opportunities to grow, evolve and innovate. In this hyper-personalized public sphere, citizens are bound to develop a skewed understanding of reality, by, say, becoming fixated on yet another social media feud while a wildfire rages in the next town over. In the early pages of his 1989 book The Structural Transformation of the Public Sphere , Habermas discussed “the public sphere as a realm of freedom and permanence” in reference to Greek philosophy. “In the discussion among citizens issues were made topical and took shape,” he wrote. It “provided an open field for honorable distinction: citizens indeed interacted as equals with equals, but each did his best to excel.” Habermas also observed that “publicity has changed its meaning” with developments in mass media at the time: “Originally a function of public opinion, it has become an attribute of whatever attracts public opinion.” Yet if Facebook Trending functioned as prescribed, it would allow for a discursive landscape without the limits of individually imposed echo chambers. It would give us an unfiltered picture of a public discussion across a major social platform, and a way to understand what is important to the larger public, not just our own interest groups. The tool promised to rebuild a common understanding of what matters to the public. In the end, it was not properly designed and failed to function as a way to gauge what’s in the zeitgeist. It was criticized for being easily manipulated , a ready tool for corporate gaming and political disinformation campaigns. It was fairly simple to control the lists by using automated bots. Some argued that Facebook was too slow in moderating harmful content, such as conspiracy theories , which appeared in Trending news. Many derided the algorithms powering it as biased or faulty. But algorithms are neither good nor bad: They are what we program them to be. Algorithmic bias is merely a reflection of systemic bias , as filtered through designers and engineers. Facebook, (along with the other major tech companies like Twitter and Google), can fix these algorithms. It can improve moderation functions of the feature, for example by instituting greater lags before news topics hit the list. It desperately needs to reform its controversial moderator system by introducing better employee support, protection and oversight, improving internal and external guidelines, and flagging controversial topics and news sources, to start. Facebook and other social platforms should also allow for more research and academic access to its data, such as information on how to effectively—and ethically—engage people with news stories. Trending was an imperfect tool, but it held the potential to capture public conversations and common concerns—as well as important disputes—at a scale that wasn’t technologically possible before. It has been difficult to replicate since. The capacity of any public sphere is limited—both by the space that media allots to news, and by the amount of collective attention the public can grant to any particular topic. It is crucial that we do everything we can to protect democratic discourse and support the development of an open, civil, digital public sphere. Tech platforms like Facebook hold a tremendous power to help facilitate this. With the role they occupy in society, and increasingly in government, they also have a responsibility to do so. On the government level, we need to rethink particularly restrictive takedown requirements, such as Germany’s NetzDG law . We need policy that protects intermediary liability safe harbors, like America’s increasingly threatened CDA Section 230 . We need laws that support net neutrality and open internet access worldwide. From a 2019 vantage point, one might be tempted to conclude that Habermas’s 2006 prediction has been fully vindicated, and that digital discourse was bound to lead to the erosion of shared public conversations, based on his assessment of the “ parasitical role of online communication ” in the public discourse. But the future of the public sphere is not engraved in stone. Since social media platforms now control such a vast part of our infrastructure for public conversation, they have tremendous power to shape it. The removal—rather than repairing—of features like Trending is but one example of how consequential reactive decisions impact our public spheres. To protect democracy around the world, social media platforms must live up to their responsibility and work harder to create better environments for constructive democratic discussion. Sign up for the Quartz Daily Brief , our free daily newsletter with the world’s most important and interesting news. More stories from Quartz: Tulsi Gabbard was a surprise breakout in first Democratic debate Young female doctors are at high risk for burnout and “self-care” is not the answer |
3 Big Biotechs Hold Growth Potential in Second Half of 2019
The biotech sector has had a pleasant bull run in the first half of 2019 and so far after a dismal period of two years. The NASDAQ Biotechnology has seen growth of 11.5% year to date.
The biotech sector has always persisted to be riskier than the more stable large cap pharmaceuticals industry or the overall medical sector as investors are mostly banking on the product pipelines with a very few companies having approved drugs in their portfolio. An unfavorable outcome from a key trial on a promising candidate can spell doomsday for that particular biotech player. Nevertheless, things are now looking up for the sector, which in the past reaped solid returns for the risk-taking investor. Notably, the sector has performed better than the large cap pharmaceuticals industry so far.
Medical - Biomedical and Genetics Industry 5YR % Return
Attractively modest valuations on account of a disappointing run in 2018 sparked renewed interest in the ever-volatile biotech sector from the onset of this year. Evidently, the spotlight is back on mergers & acquisitions. A slowdown in mature products due to increasing competition and rise of biosimilars forced most pharma behemoths to target lucrative buyouts in the biotech space to bolster their pipelines. While oncology and immuno-oncology are the key areas of focus, treatments for non-alcoholic steatohepatitis (NASH) and rare diseases also promise great potential, thereby making them profitable areas of investment. Bristol-Myers Squibb Company BMY, one of the largest pharma giants, announced that it will acquire the leading biotech company Celgene CELG for a whopping $74 billion in what could be one of the major acquisitions in recent times.
Further, a flurry of deals has been struck with most companies eyeing smaller entities with impressive pipelines. This, in turn, drove the share price value of small biotech stocks, which are well-equipped with path-breaking technology. Eli Lilly purchased Loxo Oncology. Most recently, Pfizer announced that it will acquire Array BioPharma ARRY for $11.4 billion.
Another important trend worth mentioning in this dynamic sector has been an effort by leading biotech companies to diversify their revenue bases. Bigwigs like Gilead Sciences, Vertex Pharma and Regeneron Pharma are looking to solidify their product portfolio as well as invest in the promising areas of gene-therapy and oncology. Consequently, we expect a spurt in the collaborations and in-licensing deals as these biotechs look to reinforce the respective revenue streams. Meanwhile, new drug approvals and label expansions of blockbuster drugs boosted investor sentiment and should drive growth in the second half of 2019 as well. Key nods include Evenity, Ruzurgi, Zulresso, Cablivi et al.
Keeping in mind the above-mentioned positive factors, we expect the sector to gather steam further as the year progresses. In such a scenario, adding stocks from this sector will likely aid portfolio returns. Moreover, the Zacks Biomedical and Genetics industry is placed within the top 30% of the 256 Zacks-ranked industries.
Stocks to Buy
While putting investors’ money on the biotech sector emanates its own share of risks, we here zero in on the three big biotech companies, which have outperformed the sector so far in 2019 and still hold an upside, backed by a broad and strong product portfolio. Moreover, investing in biotech biggies provides a cushion against volatility in the sector.
Gilead Sciences, Inc. GILD primarily focuses on developing drugs for the treatment of human immunodeficiency virus (HIV), liver diseases, hematology/oncology diseases and inflammation/respiratory diseases. The company has been a dominant market leader in the virology space. With its legacy HCV business facing a decline, the company shifted its focus to HIV business and newer avenues like NASH, oncology and CAR- T space. Gilead is a principal player in the HIV market with an encouraging portfolio of the same. Gilead is looking to transition the HIV market to drugs with improved long-term safety profiles. The TAF-based products like Genvoya, Odefsey and Descovy are performing well with a strong adoption in both the United States and Europe. The recent approval of Bikatarvy further boosted the company’s portfolio. Gilead has a robust pipeline with several development programs currently underway, ranging from phase I to phase III. It has quite a few programs targeting inflammation, NASH and oncology. Gilead is looking to brace its portfolio and pipeline through deals and acquisitions. The company is also looking to expand beyond antivirals into other therapeutic areas. Gilead acquired Kite Pharma to foray into the emerging field of cell therapy. The company has also collaborated with Novo Nordisk to strengthen its NASH pipeline.
Gilead currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals IncorporatedVRTX is focused on the discovery, development and commercialization of small molecule drugs targeting serious diseases. Vertex’ key area of focus is cystic fibrosis (CF) and has a market leading portfolio of the same. The company’s lead marketed products are Symdeko/Symkevi (tezacaftor in combination with ivacaftor), Orkambi (lumacaftor in combination with ivacaftor) and Kalydeco (ivacaftor). Consistent positive regulatory approvals led to an increase in the eligible patient population for these drugs. The CF market represents a huge commercial potential and Vertex has been striving hard to further cement its pipeline. The company’s CF pipeline is quite strong. It evaluated two next-generation CFTR correctors (VX-659 and VX-445) in phase III studies as part of a triple combination with tezacaftor and ivacaftor. It chose VX-445 triple combination regimen for regulatory submissions in 2019. If the triple-combo regimen is approved, Vertex can address a significantly wider CF patient population, accounting for almost 90% of subjects with CF in the future.
Meanwhile, the company is also developing treatments for sickle cell disease, thalassemia and pain management.
Vertex currently carries a Zacks Rank of 2.
Alexion Pharmaceuticals, Inc. ALXN is a biopharmaceutical company, focused on the development and commercialization of life-transforming drugs, for the treatment of patients with ultra-rare disorders. Alexion's blockbuster drug, Soliris (approved for paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS), continues to perform well. The drug’s label expansion for the generalized myasthenia gravis indication boosted sales significantly. The FDA recently approved Alexion’s long-acting C5 complement inhibitor, Ultomiris, for the treatment of adults with PNH, which consolidated its PNH franchise. The initial uptake of the drug raises optimism. The company is working to expand Ultomiris’ label. It submitted an application in the United States for the approval of the same to treat patients with aHUS. The company also initiated a phase III study on the drug for generalized myasthenia gravis (gMG) and plans to initiate another phase III program on the same for the neuromyelitis optica spectrum disorder (NMOSD).
In addition, Alexion has been quite active on the acquisition front in a bid to widen its portfolio and reduce dependence on Soliris. The company acquired Wilson Therapeutics and Syntimmune in 2018 to fortify and diversify its pipeline.
Alexion currently carries a Zacks Rank #3 (Hold).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBristol-Myers Squibb Company (BMY) : Free Stock Analysis ReportArray BioPharma Inc. (ARRY) : Free Stock Analysis ReportGilead Sciences, Inc. (GILD) : Free Stock Analysis ReportAlexion Pharmaceuticals, Inc. (ALXN) : Free Stock Analysis ReportVertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis ReportCelgene Corporation (CELG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What Kind Of Investor Owns Most Of Starbucks Corporation (NASDAQ:SBUX)?
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If you want to know who really controls Starbucks Corporation (NASDAQ:SBUX), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
Starbucks has a market capitalization of US$103b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about SBUX.
See our latest analysis for Starbucks
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Starbucks already has institutions on the share registry. Indeed, they own 75% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Starbucks's historic earnings and revenue, below, but keep in mind there's always more to the story.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Starbucks is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in Starbucks Corporation. It is a very large company, and board members collectively own US$3.2b worth of shares (at current prices). It is good to see this level of investment. You cancheck here to see if those insiders have been buying recently.
The general public, with a 22% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It's always worth thinking about the different groups who own shares in a company. But to understand Starbucks better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'Cocked and Loaded.' The U.S. Was Ready to Retaliate Against Iran, Trump Says
President Donald Trump said Friday that the U.S. was “cocked and loaded’ to retaliate against Iran for downing an American drone, but canceled the missile strikes 10 minutes before they were to be executed after being told some 150 people could die.
Trump tweeted Friday that the U.S. will never allow Iran to have a nuclear weapon. But he said he’s in no hurry to respond to the downing of the U.S. surveillance drone over the Strait of Hormuz. His statement was the latest indication that he does not want to escalate the clash with Tehran, but he didn’t rule out a future U.S. strike.
He said U.S. economic sanctions are crippling the Iranian economy and more are being added.
Iran claimed Friday it had issued several warnings before shooting down the drone over what it said was Iranian territory.
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US STOCKS-Wall St set to slip at open as Iran tensions rise
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Chipmakers fall after IQE's sales warning
* Trump warned Tehran a U.S. attack was imminent
* Energy companies gained on higher crude prices
* Futures down: Dow 0.19%, S&P 0.27%, Nasdaq 0.46% (Adds comment, updates prices)
By Amy Caren Daniel
June 21 (Reuters) - Wall Street was set to open lower on Friday as rising tensions between the United States and Iran kept investors on edge, taking the shine off a rally in the prior session that pushed the S&P 500 to a record high.
Tehran had received a message from President Donald Trump, delivered through Oman overnight, warning that a U.S. attack was imminent but adding he was against war and wanted talks, Iranian officials told Reuters on Friday.
The New York Times had earlier reported that Trump had approved military strikes against Iran in retaliation for the downing of a U.S. surveillance drone but called off the attacks at the last minute.
Earlier this week, signals from the Federal Reserve about an interest rate cut next month pushed stocks higher, with the S&P 500 index closing at a new record of 2,954.18 on Thursday and on track to end the week at least 2% higher.
Money markets are pricing in three rate cuts before year-end and are betting on as many as five cuts through mid-2020.
"When you look at the magnitude of the move we've had in a short period of time, especially this week, I'm not surprised to see the markets lower today," said Art Hogan, chief market strategist at National Securities in New York.
"We know there's a G20 meeting, which could be binary in its results being bullish or bearish. It's not unusual for investors to take a bit of a pause."
Investors will now look to the Group of 20 summit in Japan next week for signs of progress on the trade dispute between the United States and China that had sparked the worst monthly performance of U.S. stock indexes this year in May.
Crude prices gained about 1% on fears that a U.S. military attack on Iran that would disrupt flows from the Middle East.
Oil major Exxon Mobil Corp rose about 0.3% in premarket trading, while Halliburton Co and Marathon Oil Corp gained nearly 1% each.
At 8:29 a.m. ET, Dow e-minis were down 51 points, or 0.19%. S&P 500 e-minis were down 8 points, or 0.27% and Nasdaq 100 e-minis were down 35.25 points, or 0.46%.
Volatility may rise during Friday's session on account of "quadruple witching," as investors unwind interests in futures and options contracts prior to expiration.
Chipmakers fell after Britain's IQE Plc became the latest semiconductor company to warn on full-year revenue, citing the impact of the Huawei ban.
Shares of Micron Technology, Broadcom Inc and Advanced Micro Devices fell between 0.3% and 1.5%.
Among other stocks, Facebook Inc fell 0.7% after Bank of England Governor Mark Carney said major central banks and regulators will want oversight of the social media company's proposed new cryptocurrency Libra.
Slack Technologies Inc gained 2.8%, a day after the workplace messaging platform soared nearly 50% in market debut.
Markit manufacturing sector flash PMI data, due at 09:45 a.m. ET, is expected to show a reading 50.4 in June, up from 50 a month earlier.
The PMI reading comes after data from Germany, France and euro zone came in slightly higher in June compared to May. (Reporting by Amy Caren Daniel and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty) |
Canopy Growth stock plunges after earnings letdown, Acreage warning
Canopy Growth’s stock (CGC) tumbled by more than 8% in early Friday trading, hurt by a disappointing quarterly earnings report that warned its impending merger with Acreage Holdings would result in a “material charge” to its 2020 results.
The world’s largest cannabiscompany by market capitalization reportedC$94.1 million ($71.27 million) in net revenue for its fiscal fourth quarter. That topped analyst expectations of C$92.24 million, according to Bloomberg.
Yet earnings per share missed expectations by a wide margin. The company reported an adjusted C$0.98 loss per share compared to the C$0.32 per-share loss analysts had been expecting.
On Wednesday, Canopy’sagreement to acquire New York-based multi-state operator Acreage Holdings(ACRGF) overwhelmingly passed a shareholders vote. It sets both companies up to merge, whenever the sale of marijuana becomes federally permissible in the U.S.
However, Canopy cautioned investors that the Acreage acquisition could lead to a charge that would have a “materially negative impact on net income in the first quarter of fiscal 2020.”
The stock, traded on the New York Stock Exchange, traded near $40, off by 8% from Thursday’s close.
Adding to the bad news was a slump in Canopy’s adjusted gross margin for the quarter ended March 31, which plummeted to just of 16% which was down from 22% in the prior quarter and also below the consensus estimate of 24%.
Still, the company ended the quarter with a giant cash position of $4.5 billion, still boosted by the 2018 $4 billion investment from Corona maker Constellation Brands (STZ).
Canopy now has hemp cultivating operations owned or contracted across New York, California, Colorado, Kentucky, North Carolina, Oregon and Pennsylvania.
Canopy Growth CEO Bruce Linton previouslytold Yahoo Finance the company had planned to expand hemp plans to seven U.S. states earlier in June.
Watch Canopy Growth CEO Bruce Linton discuss the latest quarter on Yahoo Finance’sYFi PMat 1PM EST Friday.
Zack Guzman is the host ofYFi PMas well as a senior writer and on-air reporter covering entrepreneurship, startups, and breaking news at Yahoo Finance. Follow him on Twitter@zGuz.
Read more:
Blue Moon's creator launched a cannabis beer that sold out in 4 hours
Constellation Brands shareholders are getting Canopy Growth almost for 'free': Canopy CEO
Exclusive: Canopy Growth to invest up to $500 million in hemp production in U.S. states |
What Kind Of Investor Owns Most Of Starbucks Corporation (NASDAQ:SBUX)?
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The big shareholder groups in Starbucks Corporation (NASDAQ:SBUX) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
Starbucks is a pretty big company. It has a market capitalization of US$103b. Normally institutions would own a significant portion of a company this size. In the chart below below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about SBUX.
View our latest analysis for Starbucks
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 75% of Starbucks. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Starbucks's historic earnings and revenue, below, but keep in mind there's always more to the story.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Starbucks. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Starbucks Corporation. Insiders own US$3.2b worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checkingif those insiders have been selling.
With a 22% ownership, the general public have some degree of sway over SBUX. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It's always worth thinking about the different groups who own shares in a company. But to understand Starbucks better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Shia LaBeouf makes fans dream come true with The Peanut Butter Falcon trailer
The Peanut Butter Falcon stars Shia LeBeouf as a small time outlaw who joins forces with Zak (Zack Gottsagen), a young man with Down Syndrome on the run. (Signature Entertainment) In possibly the most heartwarming news of the day, the first trailer for The Peanut Butter Falcon has dropped, revealing that the incredible story behind the film is as moving as the events portrayed in the teaser. Landing on Reddit with the headline We made THE PEANUT BUTTER FALCON with Shia LaBeouf for our friend with Down syndrome who wanted to be a movie star, the trailer outlines the movies plot; it follows a young man with Downs syndrome who wants to be a wrestler, who teams up with an outlaw to pursue his dreams. Its a lovely trailer, but while posting it, writer/director Tyler Nilson revealed information about the making of the movie that wed actually also like to see turned into a film. When asked by a commenter how he managed to get his excellent actors, Nilson replied that they, shot a trailer with no money. slid up in DMs. got one yes... then a landslide of help / support / good vibes. I was homeless at the time, living in a tent behind someone house in LA. Zack Gottsagen and Shia LaBeouf star in The Peanut Butter Falcon (credit: Signature) Nilson doesnt confirm who that one yes was, but our best guess would be Shia LaBeouf, as hes the sort of name that can green light an indie like this, who also enjoys doing a wide variety of interesting projects. Nilson explains further later in the thread. Five years ago a friend of ours with Down syndrome said he wanted to be a movie star and asked us to make a movie with him. We immediately said yes, because we knew Zack had the talent to carry a feature film. He just needed the shot, and if he could get into a movie we knew he would hit a home run. So we wrote this film specifically tailored for him. Read more: 'The Rise of Skywalker' is Mark Hamill's last 'Star Wars' film I couldnt be more proud for people to meet Zack Gottsagen and see the performance that he gives in The Peanut Butter Falcon alongside Shia LaBeouf, Dakota Johnson, John Hawkes, Thomas Haden Church, Jon Bernthal, Bruce Dern, Yelawolf, Jake The Snake Roberts, and Mick Foley. Shia LaBeouf and Jon Bernthal in The Peanut Butter Falcon (credit: Signature) Yeah, thats quite the cast, and quite the backstory. The film has been acquired by Signature in the UK, with Signatures Elizabeth Williams saying, We are delighted to be the UK home for this charming and beautifully made movie. The Peanut Butter Falcon is on many must watch lists of the year following its break-out launch at SXSW earlier this year and we will be giving the film the profile and love it deserves when it hits UK cinemas later this year. A UK release date is as yet unconfirmed. View comments |
Trump says he was 'cocked & loaded' for Iran strike but called it off at last minute
In an extraordinary series of tweets riddled with typos and errors, President Trump on Friday explained his rationale for calling off a retaliatory military strike against Iran over the downing of a U.S. drone. We were cocked & loaded to retaliate last night on 3 different sights [sic] when I asked, how many will die, Trump tweeted . 150 people, sir, was the answer from a General. 10 minutes before the strike I stopped it, not proportionate to shooting down an unmanned drone. I am in no hurry, our Military is rebuilt, new, and ready to go, by far the best in the world, the president continued . Sanctions are biting & more added last night. Iran can NEVER have Nuclear Weapons, not against the USA, and not against the WORLD! Trump argued that sanctions he imposed on Tehran after withdrawing from the Iran nuclear agreement have weakened Iran. In a subsequent interview with NBCs Meet The Press, Trump recalled the conversations he had before making the decision not to strike. They came and they said, Sir, were ready to go. Wed like a decision. I said, I want to know something before you go. How many people will be killed? In this case, Iranians, Trump said. I said, How many people are going to be killed? Uh, sir, Id like to get back to you on that. Great people, these generals. They said, they came back, they said, Sir. approximately 150. And I thought about it for a second and I said, you know what, they shot down an unmanned drone, plane, whatever you want to call it. And here we are sitting with 150 dead people, that would have taken place probably within a half an hour after I said, Go ahead. He added: I didnt like it. I didnt think it was proportionate. President Trump speaks to reporters in the Oval Office Thursday. (Photo: Alex Wong/Getty Images) Trumps Friday tweets followed the downing of a U.S. military drone by Iranian fire early Thursday, an attack he erroneously said happened Monday. Iran claimed the drone was over its territory; the Pentagon says it was flying over international waters in the Strait of Hormuz. Story continues Iranian reports that the aircraft was over Iran are false, Bill Urban, a spokesman for U.S. Central Command, said at a press briefing. This was an unprovoked attack on a U.S. surveillance asset in international airspace. Last week two oil tankers the Japanese-owned Kokuka Courageous and the Norwegian-owned Front Altair were damaged in attacks off the Iranian coast, attacks that the U.S. has also blamed on Iran. The downing of the drone sparked fears of a possible new military conflict in the Middle East , despite Trumps stated aversion to dragging the United States into another war. [ Former top U.S. diplomat: Trumps Iran policy untethered to any coherent strategy ] Iran made a very big mistake! Trump tweeted soon after the attack. But in later remarks to reporters he put a slightly different spin on the comment, implying that the attack was unintentional, rather than the result of a strategic miscalculation. It was a general or somebody who made a mistake in shooting that drone down, Trump said. I find it hard to believe it was intentional, if you want to know the truth. I think that it could have been somebody who was loose and stupid that did it. He added: We didnt have a man or woman in the drone. It would have made a big, big difference. The New York Times reported that Trump approved a retaliatory strike against Iran on Thursday night but abruptly called it off even as the U.S. military was poised to launch. The report led several top Democrats to accuse Trump of escalating tensions with Tehran . There is no justification for further escalating this crisis, Sen. Elizabeth Warren tweeted. We need to step back from the brink of war. ___ Read more from Yahoo News: Trump says Irans attack on U.S. drone was likely not intentional AOC accuses Trump administration of creating concentration camps U.S. probably had excellent presidents who were gay, Buttigieg says Trump wants his next press secretary to be a cable news street fighter Orlando Sentinel endorses not Donald Trump for president |
All-electric aircraft maker sees 'America First' opportunity as it wins first US customer
Flying “green” will soon hit the blue skies of the U.S. aviation industry.
Eviation Aircraft’s “Alice” — an all-electric, 9-passenger plane — has made a big mark at the 2019 Paris Airshow. The Israeli-based startupwon its first commercial orderwith Cape Air — a U.S. regional airline that serves 35 destinations in the U.S. and the Caribbean.
“In our case, the market — especially for general aviation for smaller planes — is so predominantly American, that it’s truly an ‘America First’ situation,” Eviation CEO Omer Bar-Yohay toldYahoo Finance’s “The Ticker” on Thursday. “The plane is built all over the world. It’s integrated for [going to] market in the U.S.”
With U.S. and international air travel demandsteadily climbing— along with the pollution that comes with it — the race is on for the next generation of aircraft that can reduce carbon emissions while remaining economically viable.
Eviation believes that it has a significant head start against its relatively nascent competition. “This is one of those occasions where ‘green’ actually makes economic sense,” according to Bar-Yohay. “The major differentiator for this aircraft is not just the fact that it’s sustainable and green — but the fact that it’s cheaper to operate,” he adds.
But the aerospace giants are not idly standing by. United Technologies (UTX) has launched development of a hybrid-electric plane mysteriously dubbed “Project 804.” Meanwhile, Boeing (BA) has invested in the hybrid-electric aircraft startup Zunum Aero, though that company reportedlyran into financing troubleearlier this year.
With the hybrid-electric aviation market worth up to $178 billion dollars by 2040according to UBS, the green aircraft race only stands to intensify. “We do believe that within the next five or six years you’re going to see not just us, but a lot of competition, working its way toward regional flights that are electric,” says Bar-Yohay.
Eviation has the 650-mile range “Alice” slated for test flights this year. It’s aiming for certification in 2021, with commercial flights beginning in 2022. Will it stay one step (or wingspan) in front of its rivals?
Watch above for more.
Nick Robertson is a senior producer at Yahoo Finance.
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Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
S&P 500 Hits New High: 10 Top-Performing ETFs YTD
Braving global growth concerns, the bulls are back with the S&P 500 surging to its first record close since April. The rally has been primarily fueled by the Federal Reserve, which signaled easy money policies as soon as July, given aggravating trade disputes, global recession fears and bouts of weak data.Lower interest rates would make borrowings cheaper, providing a boost to both investment in new projects and repayment of higher-rate debt. As such, it would lead to strong economic growth and is thus a boon for the stock market. In fact, the central bank in the latest FOMC meeting hinted at future rate cuts and removed the word “patient” from its updated policy statement. It said it would act "as appropriate" in order to sustain an economic expansion of nearly 10 years. According to the CME FedWatch tool, traders are now pricing in a 100% chance of a rate cut next month (read: Sector ETFs & Stocks to Buy or Avoid Post Fed Meeting).Additionally, the possibility of a resumption of trade talks between the United States and China later this month added to the strength. Further, oil price surge and a rise in deal activities are also driving the bulls lately. All these developments have rekindled investors’ confidence in the U.S. economy.
While there have been winners in many corners of the space, we highlight 10 ETFs that have outperformed and gained more than 30% in the year-to-date time frame. These are expected to continue outperforming, provided the fundamentals remain intact.Invesco Solar ETF TAN – Up 51.2%This ETF, which offers global exposure to 22 solar stocks, has emerged as an undisputed winner this year so far given the strongest-ever solar installation and the exemption of tariff on one type of solar panels. American firms dominate the fund’s portfolio with nearly 53.5% share, followed by China (21.6%) and Germany (6.9%). The product has amassed $350.7 million in its asset base and charges investors 70 bps in fees per year. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Solar ETF Hits New 52-Week High).Invesco DWA Technology Momentum ETF PTF – Up 41.8%The technology sector rebounded this month after a steep sell-off on cheap valuation and improved sentiments. It has again become a top performing sector this year with PTF leading the way. This fund follows the Dorsey Wright Technology Technical Leaders Index and provides exposure to technology companies that are showing relative strength (momentum). Holding 39 stocks in the basket, the product has AUM of $205.4 million and charges 60 bps in annual fees. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook.Renaissance IPO ETF IPO – Up 39.1%This ETF has been surging on a slew of blockbuster IPOs. It provides exposure to the 74 largest and most-liquid newly listed companies by tracking the Renaissance IPO Index. Technology is the top sector accounting for 36% share while communication services and real estate round off the next two spots with double-digit allocation each. The fund has amassed $48.3 million in its asset base and charges 60 bps in annual fees (read: 5 ETFs That More Than Doubled S&P 500 This Year).Invesco WilderHill Clean Energy ETF PBW – Up 37.9%This product, powered by solar surge, provides exposure to 38 U.S. companies engaged in the business of advancement of cleaner energy and conservation. It has AUM of $167.1 million and expense ratio of 0.70%.Invesco DWA NASDAQ Momentum ETF DWAQ – Up 35.6%In an uptrend market, momentum ETFs perform well compared to others. DWAQ offers exposure to 100 large-cap companies that are showing relative strength (momentum). Healthcare is the top sector accounting for more than one-third share, closely followed by information technology with 27.1% share. The product has accumulated $47.7 million in its asset base and has expense ratio of 0.60%.ARK Genomic Revolution Multi-Sector ETF ARKG — Up 35%The biotech sector has been on the mend amid the ongoing industry consolidation and attractive valuations. Particularly, the surge in demand for artificial intelligence in the advancement of diagnoses and treatment across the health care spectrum has been driving this ETF. This is an actively managed ETF, focusing on companies likely to benefit from the extension and enhancement of the quality of human and other life by incorporating technological and scientific developments plus improvements and advancements in genomics into their business. With AUM of $425.7 million, the fund holds 38 stocks in its basket and has 0.75% in expense ratio.ETFMG Prime Mobile Payments ETF IPAY – Up 33.2%This ETF targets the mobile payments industry and tracks the Prime Mobile Payments Index. It capitalizes on the transition from cash/physical credit card payments to a mobile/digital system, charging investors 75 bps in annual fees. The fund holds 42 stocks in its basket with AUM of $701.6 million.Global X FinTech ETF FINX – Up 32%This product invests in companies on the leading edge of the emerging financial technology sector, which encompass a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions. With AUM of $395.3 million, it holds 42 stocks in its basket and charges 68 bps in annual fees (read: 5 Tech ETFs Braving Trade Tensions in May).Invesco Russell MidCap Pure Growth ETF PXMG – Up 32.9%This fund targets the growth corner of the mid-cap segment by tracking the Russell Midcap Pure Growth Index. It holds 95 securities in its portfolio with information technology being the top sector at 43.9%. The fund has amassed $660 million and charges 39 bps in annual fees. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 5 ETF Strategies to Beat Sell in May and Go Away).Global X E-commerce ETF EBIZ – Up 32.9%This fund invests in companies positioned to benefit from increased adoption of e-commerce as a distribution model, including companies whose principal business revolves around operating e-commerce platforms, providing related software and services, and/or selling goods and services online. It recently debuted in the space and has accumulated $2.8 million in its asset base since late November. It charges 68 bps in annual fees.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportETFMG Prime Mobile Payments ETF (IPAY): ETF Research ReportsInvesco Solar ETF (TAN): ETF Research ReportsInvesco WilderHill Clean Energy ETF (PBW): ETF Research ReportsInvesco DWA Technology Momentum ETF (PTF): ETF Research ReportsRenaissance IPO ETF (IPO): ETF Research ReportsGlobal X FinTech ETF (FINX): ETF Research ReportsInvesco DWA NASDAQ Momentum ETF (DWAQ): ETF Research ReportsARK Genomic Revolution ETF (ARKG): ETF Research ReportsGlobal X E-commerce ETF (EBIZ): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
How Much Are Silicom Ltd. (NASDAQ:SILC) Insiders Taking Off The Table?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inSilicom Ltd.(NASDAQ:SILC).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Silicom
In the last twelve months, the biggest single sale by an insider was when the , Zohar Zisapel, sold US$13m worth of shares at a price of US$44.87 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$30.40). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Zohar Zisapel.
Zohar Zisapel ditched 591k shares over the year. The average price per share was US$48.04. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 13% of Silicom shares, worth about US$29m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
The fact that there have been no Silicom insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Silicom insiders. But it's good to see that insiders own shares in the company. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Silicom.
But note:Silicom may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
6 Stocks to Sell in the Back Half of 2019
Stocks have been on fire in 2019. Year-to-date, theS&P 500is up more than 16%. Over the past decade, the S&P 500 has rallied more than 16% in a full year only three times. It has done so only five times in the past two decades. We are already at that mark today, and it isn’t even July.
In other words, stocks have had a record-setting performance in the first half of 2019. As the old saying goes, “a rising tide lifts all boats.” Thus, as the broader market has rallied big in early 2019, most stocks have rallied alongside it.
But, as any good investor knows, no party lasts forever. There’s reason to believe this party in stocks will moderate into the end of the year. Depressed valuations supported the big rally in stocks in early 2019. Coming into the year, the S&P 500 was trading around 14-times forward earnings, well below the historical norm.
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Today, this depressed valuation support no longer exists. The S&P 500 now trades at over 16.5-times forward earnings, which is above the historical norm for the index. Sustained profit growth can keep stocks in rally mode despite this above-average valuation. But, with valuations now higher than they were before, the big 2019 stock market rally will likely slow into the end of the year.
As it does slow, gains across the market will become less broad and more narrow, meaning that we will see a handful of stocks struggle in the back half of the year.
• 6 Stocks Ready to Bounce on a Trade Deal
Which stocks fall into this category? Let’s take a look at six stocks to sell before the stock market party slows down.
Source: Shutterstock
At the top of this list of stocks to sell, we have athletic apparel companyUnder Armour(NYSE:UAA).
The bull thesis on UAA stock is pretty simple. You have a beaten up athletic apparel company that has struggled to grow revenues over the past several years, and which operates at depressed margins. But the company has finally cleared its inventory, and management is sounding a bullish tone about growth prospects over the next several years. Thus, there’s reason to believe that revenue growth can and will re-accelerate over the next several years, and as it does, profit growth will be doubly robust since margins will ramp from a depressed 2018 base.
This bull thesis is legit. That is exactly what will happen. But, it misunderstands one very important thing: valuation.
UAA stock trades at 53-times forward earnings. The growth darlings in this industry,Nike(NYSE:NKE) andLululemon(NASDAQ:LULU), both trade sub-40 forward multiples. They are also both growing revenues faster than Under Armour. Sure, UAA has more profit growth potential because of its depressed 2018 margin base. Even if you model everything out, though, it’s tough tojustify a $29 price tagon UAA stock today.
As such, I think growth will disappoint in the back-half of the year, and that this disappointing growth will ultimately short-circuit the recent rally in UAA stock.
Source: Shutterstock
Second on this list of stocks to sell in the back half of 2019 is hyper-growth social media companySnap(NYSE:SNAP).
Much like Under Armour, the bull thesis on Snap is pretty simple. After several quarters of user base compression, the user base has finally stabilized, and will likely resume growth in the coming quarters as the Android app revamp grows the platform’s international reach. With the user base back in growth mode, the company can return its focus to improving the ad business, which should result in advertisers flocking back to the platform. This will result in healthy revenue growth, which should also drive strong margin expansion, and one day produce big profits at scale.
Much like the bull thesis on UAA stock, the bull thesis on SNAP stock misunderstands valuation and competition.
SNAP stock trades at a whopping 12-times forward sales.Facebook(NASDAQ:FB) andTwitter(NYSE:TWTR) both trade around 8-times forward sales. Again, some of the valuation premium is warranted because Snap is ramping growth from a smaller base. But competition concerns are very real here, and could ultimately short-circuit Snap’s renewed user growth trajectory and ad growth ramp, especially if Instagram plunges more into commerce and grows young consumers mind-share. If that happens, SNAP stock will fall in a big way from today’s elevated valuation levels.
• 7 Value Stocks to Buy for the Second Half
Net net, SNAP stock has simply come too far and too fast in 2019, and looks subject to a big draw-down in the back half of year in the not-so-unlikely event that the growth trajectory flattens out.
Source:Mike Mozart via Flickr (Modified)
Third on this list of stocks to sell in the second half of 2019 is consumer staples giantProctor & Gamble(NYSE:PG).
At first glance, PG stock looks like a great place to hang out right now. This is a consumer staples giant which sells the sort of stuff that will have stable consumer demand forever regardless of the economic backdrop. Thus, with macroeconomic risks on the rise in a late stage bull market, P&G’s relatively stable profit growth outlook is attractive. Further, the stock has a juicy 2.7% yield, which looks especially attractive against the backdrop of a depressed 10-year Treasury Yield.
The problem, though, is that everyone is looking at PG stock this way, and long Procter & Gamble has become a crowded trade.
PG stock now trades at 24-times forward earnings. That’s a bigger forward earnings multiple than both Facebook andAlphabet(NASDAQ:GOOG, NASDAQ:GOOGL). Both Facebook and Alphabet grew revenues by over 20% last quarter, have reported 20%-plus revenue growth for the past several years, and project to do the same over the next several years. P&G reported organic revenue growth of 5% last quarter and un-adjusted sales growth of 1%. Over the next several years, this projects as a low-single-digit revenue grower.
In other words, the long PG trade has become way overcrowded. Towards the back half of the year, as growth continues to come in at the low-single-digit range, this crowded trade will unwind, and PG stock will fall.
Source: Shutterstock
Another stock to sell in the back half of 2019 is retail coffee giantStarbucks(NASDAQ:SBUX).
Much like Procter & Gamble, SBUX stock looks really good upon first glance. You have the world’s leading retail coffee company which is using menu innovations and digital integrations to drive re-accelerated positive comparable sales growth in the U.S. At the same time, the company is rapidly expanding in China and has robust growth potential over there, supported by a long unit growth runway. Margins are stable. Profits should head higher. So should the stock.
But, there are competition risks here which could hamper the growth narrative in the second half of 2019.
On the U.S. front, traffic growth has gone from consistently positive to consistently negative, meaning that positive comps in the U.S. are being driven entirely by price hikes. But, withMcDonald’s(NYSE:MCD) expanding its presence in the low-price breakfast category and indie coffee shops expanding their presence in the high-price breakfast category, Starbucks doesn’t have much wiggle room to hike prices further without risking big traffic declines. This all could come to a head in the back half of 2019, and comparable sales growth could fall back to the flat line.
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At the same time, the China growth narrative is threatened by the rapid expansion of freshly publicLuckin Coffee(NYSE:LK). In the big picture, the Starbucks growth narrative is sliding on thin ice right now. That ice could break in the back half of 2019. When it does, SBUX stock is liable to fall in a big way.
Source:Mike Mozart via Flickr
When it comes to stocks to sell in the back half of 2019, one name that comes to mind is cosmetics retailerUlta(NASDAQ:ULTA).
Structurally, there is nothing wrong with the Ulta stock growth narrative. Ulta is the biggest cosmetics-focused retailer in the United States, and has naturally benefited from powerful secular growth tailwinds in the cosmetics industry over the past several years (the rise of selfie-focused and image-sharing apps has led to a rise in consumers wanting to look good, which has led to a rise in beauty sales). This tailwind will persist.
Ulta is also benefiting from a healthy unit growth narrative which has consistently powered 10%-plus unit growth over the past several years. This tailwind will largely persist, too. The company also has a strong direct business and healthy margins.
But, all of those tailwinds are slowing down and they will continue to slow. ULTA stock simply isn’t priced for this slowing to persist.
In 2017, comparable sales growth was nearly 16%. In 2018, it fell to 11%. Last quarter, it was 7%. For the full year, it’s expected at 6.5%. Digital sales growth and unit growth have followed a similar deceleration trajectory. Meanwhile, operating margins are flattening out.
The Ulta growth narrative is slowing. But, ULTA stock trades at a 52-week high valuation of nearly 28-times forward earnings. A 52-week-high valuation coupled with a slowing growth narrative? That’s not a recipe for success. As such, as those two divergent dynamics converge in the back half of 2019, ULTA stock could drop.
Source:Zoom
Last, but not least, on this list of stocks to sell for the rest of 2019 is IPO darlingZoom Video(NASDAQ:ZM).
Zoom is a great company. Video conferencing is the next big leg of growth in the enterprise communication world. Zoom is at the heart of this video conferencing growth narrative and has emerged as the hottest player in that market. Revenues rose more than 100% last quarter. Importantly, gross margins are in sky-high 80%-plus territory, the operating expense rate is rapidly falling, and the company is already profitable.
This rare combination of early profitability and big revenue growth has investors drooling over ZM stock. Consequently, the stock has nearly tripled from its IPO price.
But, this rally seems overdone. The video conferencing market is big. But notthatbig. Plus, there’s a ton of competition in this market, and Zoom is actually one of the smaller players. Sizable competition and a limited addressable market are two going concerns here. If youmath out the company’s long term potential, it would take some awfully bullish assumptions to justify a $100-plus price tag for ZM stock today.
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Broadly, then, ZM stock just seems to have come too far, too fast, during its IPO honeymoon phase. Eventually, this honeymoon phase will end, reality will sink in, and Zoom stock will drop.
As of this writing, Luke Lango was long NKE, LULU, FB, TWTR, GOOG, MCD, and LK.
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Do Insiders Own Lots Of Shares In Puxin Limited (NYSE:NEW)?
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Every investor in Puxin Limited (NYSE:NEW) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
With a market capitalization of US$515m, Puxin is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about NEW.
See our latest analysis for Puxin
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 7.8% of Puxin. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Puxin's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Puxin. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own the majority of Puxin Limited. This means they can collectively make decisions for the company. That means they own US$371m worth of shares in the US$515m company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover(for free)if they have been buying or selling.
The general public holds a 10% stake in NEW. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
We can see that Private Companies own 10%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 3-Swiss-EU bourse battle breaks out over stalled treaty
* EU moves to push Swiss bourses out of market by June 30
* Swiss vow to impose retaliatory measures
* Fight escalates as EU faces similar concerns posed by Brexit
* Market disruption likely but share trading could partly continue (Recasts with Swiss government statement)
By Francesco Guarascio and Michael Shields
BRUSSELS/ZURICH, June 21 (Reuters) - Investors in the European Union and Switzerland will lose direct access to each others' stock exchanges from July 1 in an escalating row over a stalled partnership treaty.
Frustrated with Swiss foot-dragging, the European Commission will not propose extending the equivalence regime that lets EU investors trade on Swiss bourses, effectively ending it as of July 1, an EU diplomat told Reuters on Friday.
Friday was the deadline for the Commission to make such a proposal, but it will refrain from doing so because Bern did not endorse a partnership treaty with the EU that had been negotiated for years, the diplomat said.
The move by its biggest trading partner will prompt retaliation from Bern, which last year drew up contingency plans to block by decree trading of Swiss shares on EU-based exchanges.
"Should the EU not extend Swiss exchanges' access to the EU market Switzerland would activate the protective measures decided on 8 June 2018 with effect from the end of June," a government spokesman said by email.
The blue-chip Swiss Market Index ended down 0.6% but off session lows shortly before the market close.
BREXIT IN THE BACKGROUND
Bern's request this month for "clarifications" on three areas - protecting wages, regulating state aid and defining the rights of EU citizens in Switzerland -- is seen in Brussels as demands to reopen the treaty text, which the EU refuses to do.
Granting stock market equivalence is the EU's major leverage in trying to get the Swiss to finally sign off on the pact, but Switzerland's foreign minister has said repeatedly Bern will not be rushed into any deal although it remains open for talks.
The Swiss measures could make volume swell on the SIX Swiss Exchange -- Europe's fourth-largest -- at least temporarily.
Exchange industry officials say EU investors would still be able to trade Swiss shares, but only through a broker that is a member of the Swiss exchange in Zurich, rather than having a choice of exchanges like Aquis, Cboe and Turquoise that help to drive down prices.
These other platforms now account for nearly a third of the trading volume for Swiss stocks including heavyweights like Nestle, Roche and Novartis.
Although the loss of trading access granted under an equivalence regime would also have broad financial repercussions for the 28-country EU, it was seen as inevitable in Brussels after years of inconclusive negotiations.
The hardening of the EU stance is also partly linked to parallel talks under way with Britain over Brexit, as a lenient approach to the Swiss could encourage London to seek softer terms.
The treaty would have non-EU member Switzerland routinely adopt EU single market rules, create a more efficient platform to resolve disputes, and pave the way for new trade deals, such as for an electricity union.
But ahead of Swiss parliamentary elections in October, it has drawn resistance from across the Swiss political spectrum for infringing national sovereignty.
(Reporting by Francesco Guarascio in Brussels and Michael Shields in Zurich; Editing by Andrew Cawthorne and Louise Heavens) |
UPDATE 1-U.S. existing home sales rise, boosted by lower rates
(Adds details from report)
By Jason Lange
WASHINGTON, June 21 (Reuters) - U.S. home sales rose in May, boosted by lower interest rates for mortgages, giving a positive signal for the health of the U.S. economy.
The National Association of Realtors said on Friday existing home sales increased 2.5% to a seasonally adjusted annual rate of 5.34 million units last month. April's sales pace was revised slightly higher to 5.21 million.
Economists polled by Reuters had forecast existing home sales rising to a rate of 5.25 million units in May. Existing home sales, which make up about 90 percent of U.S. home sales, dropped 1.1% from a year ago. That was the 15th straight year-on-year decrease in home sales.
Demand this years is being fueled by lower mortgage rates, which have dropped since the Fed suspended its three-year monetary policy tightening campaign. The Fed said this week that nearly half of its policymakers expect rate cuts this year due to concerns about the economic outlook.
The 30-year fixed mortgage rate has dropped to an average of 3.84% from more than a seven-year peak of about 4.94% in November, according to data from mortgage finance agency Freddie Mac.
The NAR said last year's revamp of the U.S. tax code, which reduced the amount of mortgage-interest payments homeowners could deduct, was hurting sales of homes priced $1 million and above. (Reporting by Jason Lange Editing by Paul Simao) |
Matthew Perry speaks out after photos of himself looking 'disheveled' raise concern
Matthew Perry, pictured in 2015, took to social media to joke about unflattering photos of him. (Photo: Alex B. Huckle/Getty Images) No matter what Matthew Perry is going through, his sense of humor remains intact. The beloved Friends star, 49, was photographed for the first time in a reported two years looking worse for wear. The tabloid Daily Mail ran the photos — of Perry wearing a T-shirt and sweats as he walked down a NYC street — and noted he appeared “disheveled and bloated” and called attention to his “long dirty fingernails.” His struggle with addiction — which he has been outspoken about — was referenced in the article. Matthew Perry disheveled as he emerges for the first time in two years https://t.co/7V9KVTpT0B — Daily Mail Celebrity (@DailyMailCeleb) June 21, 2019 The story caught Perry’s attention. While he only tweets about once a month, Perry, who famously played the sarcastic Chandler Bing, responded Friday with a quip about how he’s “getting a manicure this morning.” I’m getting a manicure this morning. That’s okay right? I mean it says man right in the word. — matthew perry (@MatthewPerry) June 21, 2019 Perry offered no further details about what’s been going on in his life, but he’s had recent health woes. Last September, he revealed that he had been hospitalized for three months while recovering from surgery for a gastrointestinal perforation. Earlier this year, concerns were raised when he tweeted about being “kicked out of therapy ,” but he followed that up by noting he was “back in therapy where I belong :).” Perry has been out of the spotlight professionally since 2017 when The Odd Couple reboot ended and he did an arc on The Good Fight. Read more on Yahoo Entertainment: Kathy Griffin begs Obama to 'come back' to White House Mila Kunis and Ashton Kutcher shut down rumors that they've split: 'It's over between us?' George Takei says U.S. border camps are concentration camps: 'Yes, we are operating such camps again' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle’s newsletter. |
Too rosy? Experts question Warren's wealth tax figures
WASHINGTON (AP) — The ambitious scope of Elizabeth Warren's push to rethink how America tackles issues such as health care, technology and education has energized her presidential campaign — and spurred questions about how she would deliver on her promises. At the heart of Warren's raft of policy proposals is a 2% fee on fortunes greater than $50 million, a wealth tax designed to target the nation's top 0.1% of households. Warren projects the levy would raise $2.75 trillion over 10 years, enough theoretical money to pay for a universal child care plan, free tuition at public colleges and universities, and student loan debt forgiveness for an estimated 42 million Americans — with revenue left over. But interviews with a dozen economists and tax experts from across the political spectrum point to divisions about how much money a wealth tax would raise. Some of those who laud the principles behind Warren's wealth tax questioned whether the IRS could collect the tax as effectively as the campaign projects. That skepticism illustrates the challenge Warren would face in trying to execute on an idea she has called a top early priority if she's elected. Eric Toder, co-director of the nonpartisan Urban-Brookings Tax Policy Center, said a wealth tax "could raise a substantial amount of money." But he said "there's reason to question" the Warren campaign's estimates, "or to think they might be on the high side." Owen Zidar, an assistant economics professor at Princeton University who has worked on wealth estimation issues, called the revenue estimates "optimistic." While campaigning, Warren points to "the diamonds, the yachts and the Rembrandts" as targets of her tax. But Zidar, who praised Warren's effort to tackle income inequality, said it's tough to value complicated financial holdings. Using the estate tax, which is imposed on the assets of top earners after death, as a reference, he said, "you can find reasonable economists who think there will be a lot of avoidance and evasion that will make it hard to collect as much as you expect." Story continues The wealth tax's most high-profile critic is Larry Summers, the onetime economic adviser to former President Barack Obama whose bid to become Federal Reserve chairman collapsed in 2013 thanks to Senate pushback that reportedly included Warren. Summers and Natasha Sarin, an assistant professor at the University of Pennsylvania, used estate tax revenue as a model for a recent Washington Post op-ed that warned "it is likely extremely premature to bank on anything like the $200 billion plus" Warren's campaign says the wealth tax would raise. "It's a failed international model that we've decided we're going to bring to the U.S. without explaining why our version of it is going to be so much better, both from an efficiency perspective but also a revenue-raising standpoint," said Sarin. She said top earners will find ways around the levy. "Whatever resources you have, the ultrawealthy will have more," she said. Beyond revenue questions, the tax could face a legal challenge citing the Constitution's restriction on so-called direct taxes, unless proceeds are distributed to states based on population size. Warren, a former Harvard law professor, has sought to address those concerns by releasing letters from more than a dozen other law professors attesting to the wealth tax's constitutionality. Warren's campaign stands by its "conservative" estimate, conducted by Emmanuel Saez and Gabriel Zucman at the University of California, Berkeley, two economists known for their work on income inequality. "The tax will be straightforward to administer because it builds off of existing IRS rules and applies to only 75,000 ultra-wealthy families who typically already keep careful track of their wealth," campaign spokeswoman Saloni Sharma said in a statement. Using comparable wealth taxes imposed in other countries, Saez and Zucman assumed a 15% rate of avoidance and evasion of the wealth tax, which Warren would pair with a major boost to the IRS' enforcement budget and a 40% "exit tax" designed to stop the wealthy from moving their citizenship and assets overseas. Such moves could be crucial if Warren hopes to reach her $2.75 trillion target. Gene Sperling, a veteran economic adviser to former Presidents Bill Clinton and Obama, said he might have offered a slightly lower revenue projection. But stepped-up enforcement could get her close, he said. No one "should start our policy analysis from the assumption that the miserable state of enforcement for the estate tax is an immovable part of nature that can't be improved with smart public policy," said Sperling, whom the Warren campaign consulted on its wealth tax. Warren has offered more specificity about how she'd pay for her goals than any other Democrat in the race. Several liberal economists noted that, at a time when President Donald Trump and congressional Republicans passed more than $1 trillion in tax cuts without paying for them, Warren shouldn't be held to a different standard. And a new tax akin to Warren's performs well among voters. A Quinnipiac poll from April found 6 in 10 registered voters saying they support an annual wealth tax that would tax individuals 2% on any wealth over $50 million. Similarly, a CNN poll from February found 54% in support of a new tax for those with a net worth of $50 million, but the question did not specify what the tax rate would be. Both polls find Democrats largely in support, while a majority of Republicans stand opposed. The wealth tax isn't the only idea Warren has proposed to help fund her priorities. She's also pitched a 7% tax on corporate profits greater than $100 million, designed to raise about $1 trillion over 10 years from giant companies that she argues tallied zero or negative tax bills thanks to advantages in the existing code. Most companies push back on that assessment. And if Warren doesn't hit her revenue goals, she could simply add to the deficit — as Trump has. Jonathan Gruber, the Massachusetts Institute of Technology professor who helped shape the Affordable Care Act, quipped that "if President Obama had been much less fiscally responsible, it would have been a much more popular law." ___ Associated Press writers Hunter Woodall in Windham, N.H., and Hannah Fingerhut in Washington contributed to this report. |
ON Semiconductor Closes Buyout of Quantenna in All Cash Deal
ON Semiconductor CorporationON has completed the acquisition of Quantenna Communications, Inc. The deal was announced on Mar 27, 2019, for a cash consideration of $24.50 per share. The transaction is anticipated to strengthen the acquirer’s connectivity portfolio.
Post-acquisition, Quantenna will be incorporated into ON Semiconductor’s Analog Solutions Group and will be led by Vince Hopkin. We believe the buyout will be accretive to the company and will add to its growth.
Details of Acquisition
The company expects the acquisition to be accretive to non-GAAP earnings, free cash flow, book value per share and amortization of acquired intangibles.
From the standpoint of Keith Jackson, president and CEO of ON Semiconductor, the buyout is expected to add substantial value to the company’s operations and build a platform for low-power connectivity in industrial and automotive applications. With Quantenna’s Wi-Fi technologies and software expertise, ON Semiconductor will strengthen its foothold further in industrial and automotive markets.
From Quantenna’s point of view, “As part of ON Semiconductor, Quantenna will benefit from a world-class organization in our commitment to providing the best end user experience for our customers.”
ON Semiconductor Corporation Price and Consensus
ON Semiconductor Corporation price-consensus-chart | ON Semiconductor Corporation Quote
Acquisitions: A Key Catalyst
ON Semiconductor has always been active on the acquisition front. In the recent past, the company acquired Cypress Semiconductor’s CMOS Image Sensor Business Unit, SANYO Semiconductor, AMI Semiconductor, Analog Devices’ power PC controller business, CMD, Catalyst and SoundDesign.
Further, the company’s acquisition of Fairchild Semiconductor International makes it a leader in the power semiconductor space. The deal will help the company diversify across many markets, with a planned focus on smartphone, automotive and industrial end markets.
Balance Sheet Details
As on Mar 29, 2019, ON Semiconductor had cash and cash equivalents of approximately $939.6 million, down from $1.070 billion reported in the previous quarter.
During the last reported quarter, cash from operations came in at $138.2 million compared with the previous quarter’s figure of $421 million.
To Conclude
During the last reported quarter, the automotive (34% of revenues) end-market revenues were approximately $465 million, up 4% year over year.
Further, the company is focused on investing in growth areas such as ADAS and wireless charging in the automotive business to broaden exposure. This will further enhance performance and help the company deliver strong results.
The product launches in the automotive end market for next generation automobile designs along with the existing product portfolio will increase revenues for the business quarter over quarter.
Zacks Rank and Stocks to Consider
Currently, ON Semiconductor carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Match Group, Inc. MTCH, Silicon Motion Technology Corporation SIMO and Autohome Inc. ATHM, all flaunting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Match Group, Silicon Motion and Autohome have a long-term earnings growth rate of 15.2%, 5% and 20.9%, respectively.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportMatch Group, Inc. (MTCH) : Free Stock Analysis ReportAutohome Inc. (ATHM) : Free Stock Analysis ReportSilicon Motion Technology Corporation (SIMO) : Free Stock Analysis ReportON Semiconductor Corporation (ON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Thousands Besiege Hong Kong's Police Headquarters After a Day of Anti-Government Protests
A day of mostly peaceful protests in Hong Kong turned ugly Friday as crowds laid siege to the citys police headquarters, barricading officers inside, plastering the building with slogans and pelting it with eggs and other objects as they demanded that officials apologize for the forces handling of a demonstration last week. During the late morning, thousands of black-clad demonstrators marched on the building and encircled it, setting up barricades across adjoining roads. Police appeared to be taken by surprise and retreated into the headquarters complex after attempts at negotiations failed. By nightfall, hundreds of protesters, many in protective gear, began to surge forward as if making to storm the building, defying police warnings and appeals from legislators to remain calm. The blockade follows a day in which protesters occupied major thoroughfares, government offices and law courts, forcing their closure. Protesters are furious with the police over what Amnesty International alleged was unlawful use of force by police against peaceful protesters in a June 12 crackdown , during which police fired tear gas and rubber bullets. The clashes left more than 80 wounded. The crowds outside the headquarters complex are demanding an investigation into the polices handling of the disturbances as well as the release of all those arrested. That protest, and two massive marches on June 9 and June 16, were held to voice opposition to a controversial bill that for the first time would allow extradition to mainland Chinaa law that Hongkongers fear would allow Beijing to apprehend its many critics and political opponents in the former British colony. But the demonstrations have since morphed into a broader push for political freedom and a direct challenge to Chinas sovereignty. Protesters carry banners reading Hong Kong is not China and wave the Union Jack alongside Hong Kongs old colonial flag. Story continues By 9:00 p.m. local time, the crowd outside the headquarters complex had swelled considerably and chanted Dead cops, Apologize! and No extradition to China! Local media reported that riot police were assembling in neighboring locations and ready to move in to clear the streets. But demonstrators appeared undeterred. One waved the colonial flag from atop a barricade as others passed ironing boards to the front for their comrades to use as shields. Well-known democracy activist Joshua Wong, who was only released from prison two days previously, called for a minutes silence for Marco Leung a 35-year-old who died on June 16 after hanging a protest banner from the side of a shopping mall. Popular legislator Roy Kwong then appealed for calm, saying We just contacted Marco Leungs parents. No matter how many times I say it, I still want to cry. His father hopes everyone can return home safely. If theres any danger, well leave and we can come back. I really dont want anyone to get hurt. With reporting by Laignee Barron, Abhishyant Kidangoor, Hillary Leung and Feliz Solomon / Hong Kong |
Mondelez' Expansion Plans on Track as Buyout Spree Continues
Mondelez International, Inc.’s MDLZ strategic acquisitions have been an integral part of its growth strategy. The company has undertaken several buyouts to expand customer base. In fact, management plans to focus on enhancing the snacking portfolio, an area which is growing rapidly globally. Backed by these initiatives, the stock has surged 40.5% in the past six months outperforming the industry’s growth of 13.7%.
In this regard, the company has recently inked a deal to buy majority interest in Perfect Snacks. Being a pioneer in the fast-growing refrigerated nutrition bars segment, Perfect Snacks offers original refrigerated protein bar along with organic, non-GMO, nut-butter based protein bars and bites. Moreover, Perfect Snacks generated revenues of nearly $70 million in 2018, reflecting double-digit revenue growth year over year.The inclusion of the above-mentioned products is likely to strengthen Mondelez’ portfolio, which already includes global and local brands like Oreo, Cadbury, Milka and belVita, and Tate’s. Further, this move is in sync with the company’s plans to take on the global snacking industry in wake of the growing popularity of bars and snacking.Per the deal, Perfect Snacks will operate as a separate business from its existing headquarter in San Diego, CA under the leadership of Bill, Leigh and Charisse Keith and they will retain a minor interest in the company. As of now, the deal is subject to customary closing conditions and is expected to conclude late this summer. Financial details of the transaction have been kept under wraps.With this acquisition, Mondelez will strengthen presence in the U.S. refrigerated snacks segment that accounts for one third of the total U.S. snacking market and delivers revenues of $20 billion annually. Further, well-being snacks, which include nutrition bars, packs with nuts and fruits, yogurts and hummus, account for $7 billion of total revenues in snacks market.Speaking of prior developments to bolster presence in the snacks arena, Mondelez invested in Hu Master Holdings — a renowned company offering high quality snacking items in April 2019. By collaborating with Hu Master, the company expects to make wellness-oriented snacks. In fact, Hu Master — the parent company of Hu Kitchen and Hu Products — boasts a portfolio of premium bands that focuses on healthy and vegan/paleo-friendly snacking options.This apart, Mondelez acquired premium cookie brand, Tate’s Bake Shop for $500 million in June 2018. In the same year, the company launched an innovation hub namely SnackFutures under which it plans to continue innovating products. Additionally, in January 2018, the company teamed up with Post Consumer Brands, a business unit of Post Holdings, to create two new cookie-inspired breakfast cereals. Going ahead, Mondelez plans to offer more good-for-you snacks and expects 50% of its product portfolio to comprise “well-being” items by 2020.All said, we hope that such well-chalked out efforts will provide support to the Zacks Rank #3 (Hold) stock amid unfavorable currency movement and high input costs.Looking For Consumer Staples Stocks? Check TheseCampbell Soup Company CPB has a long-term earnings growth rate of 5% and a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.General Mills GIS, with a Zacks Rank #2, has long-term earnings per share growth rate of 7%.Vitamin Shoppe VSI has an average positive earnings surprise of 319.6% in the trailing four quarters and a Zacks Rank #2.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportVitamin Shoppe, Inc (VSI) : Free Stock Analysis ReportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportMondelez International, Inc. (MDLZ) : Free Stock Analysis ReportCampbell Soup Company (CPB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
I Ran A Stock Scan For Earnings Growth And NetSol Technologies (NASDAQ:NTWK) Passed With Ease
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
In contrast to all that, I prefer to spend time on companies likeNetSol Technologies(NASDAQ:NTWK), which has not only revenues, but also profits. While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
View our latest analysis for NetSol Technologies
In a capitalist society capital chases profits, and that means share prices tend rise with earnings per share (EPS). So like the hint of a smile on a face that I love, growing EPS generally makes me look twice. It is therefore awe-striking that NetSol Technologies's EPS went from US$0.00053 to US$0.54 in just one year. Even though that growth rate is unlikely to be repeated, that looks like a breakout improvement.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). The good news is that NetSol Technologies is growing revenues, and EBIT margins improved by 12.8 percentage points to 10%, over the last year. That's great to see, on both counts.
In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers.
NetSol Technologies isn't a huge company, given its market capitalization of US$70m. That makes it extra important to check on itsbalance sheet strength.
Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
Over the last 12 months NetSol Technologies insiders spent US$116k more buying shares than they received from selling them. Although I don't particularly like to see selling, the fact that they put more capital in, than they extracted, is a positive in my mind. We also note that it was the Co-Founder, Naeem Ghauri, who made the biggest single acquisition, paying US$35k for shares at about US$7.01 each.
NetSol Technologies's earnings per share have taken off like a rocket aimed right at the moon. If you're like me, you'll find it hard to ignore that sort of explosive EPS growth. And in fact, it could well signal a fundamental shift in the business economics. If that's the case, you may regret neglecting to put NetSol Technologies on your watchlist. Now, you could try to make up your mind on NetSol Technologies by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
The good news is that NetSol Technologies is not the only growth stock with insider buying. Here'sa a list of them... with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Altice to Keep Its Offices in NYC Tower Once Slated for Amazon
(Bloomberg) -- Cable provider Altice USA will keep its offices in the New York skyscraper that Amazon.com Inc. had planned to move into before abandoning a deal to build a major campus in the city.
The television company has been at One Court Square since 2017, but would have been booted to make room for Amazon. When the online retailer backed out of New York in February, there was speculation over whether Altice would still find a new home, or stay put in the 53-story office tower in the Long Island City neighborhood of Queens.
Altice and Savanna, the building’s owner, said in a statement Friday that the cable company has signed a lease for 103,133 square feet (9,581 square meters) at One Court Square, and has the option to expand into additional floors in the future.
“Moving to Long Island City has exceeded our expectations, and we’re thrilled to solidify plans to remain in One Court Square for the long term,” Altice Chief Procurement Officer Yossi Benchetrit said in the statement. “The vibrancy of this neighborhood, along with access to the wider pool of talent in the metropolitan area, has been great for our business and our culture.”
Amazon, based in Seattle, announced in November that it would build additional headquarters in Long Island City and northern Virginia. Part of the plan was to lease a million square feet at One Court Square. A few months later, the e-commerce giant withdrew from New York following fierce public criticism of tax breaks promised to the company, and concerns about the impact on housing costs and transportation.
The move sent shock waves through the community, which had been counting on Amazon to bring as many as 40,000 high-paying jobs and dozens of other businesses to the city. Savanna was quick to start filling the hole left by the online retailer at One Court Square. Health-care provider Centene Corp., which last year acquired insurer Fidelis Care, recently agreed to lease as much as 500,000 square feet in the 1.5 million-square-foot tower, according to people with knowledge of the matter.
One Court Square, also known as the Citigroup building, was built in 1989 to house employees of the bank. Savanna has detailed plans to invest in a number of upgrades to the property, including a modernized lobby and a redesigned retail annex that will feature a 17,000-square-foot food hall.
Citigroup Inc. has been moving workers out and consolidating them into its Tribeca headquarters ahead of its 2020 lease expiration in Long Island City.
To contact the reporter on this story: Lily Katz in New York at lkatz31@bloomberg.net
To contact the editors responsible for this story: Debarati Roy at droy5@bloomberg.net, Christine Maurus
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Facebook’s Crypto Libra Won’t Be Legalized in Russia: State Press
ByCCN Markets: TASS, a major news agency in Russia wholly owned by the federal government, has reported that Russia will not legalize Libra, merely days after its highly anticipated announcement.
An excerpt fromTASS’ reportread:
“Russia will not legalize the use of Libra cryptocurrency, which Facebook plans to introduce into circulation in 2020. This opinion was expressed by the chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, in an interview with the radio station Kommersant FM on Tuesday.”
With France and the U.S. currently evaluating Libra based on existing regulatory frameworks governing the crypto sector, it remains unclear whether the cryptocurrency will be able to demonstrate a successful launch it anticipates in 2020.
Read the full story on CCN.com. |
Can We See Significant Institutional Ownership On The NewRiver REIT plc (LON:NRR) Share Register?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in NewRiver REIT plc ( LON:NRR ) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership. NewRiver REIT is not a large company by global standards. It has a market capitalization of UK£568m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about NRR. Check out our latest analysis for NewRiver REIT LSE:NRR Ownership Summary, June 21st 2019 What Does The Institutional Ownership Tell Us About NewRiver REIT? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that NewRiver REIT does have institutional investors; and they hold 82% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of NewRiver REIT, (below). Of course, keep in mind that there are other factors to consider, too. LSE:NRR Income Statement, June 21st 2019 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. NewRiver REIT is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Insider Ownership Of NewRiver REIT While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Story continues Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Shareholders would probably be interested to learn that insiders own shares in NewRiver REIT plc. As individuals, the insiders collectively own UK£6.2m worth of the UK£568m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. General Public Ownership The general public, with a 17% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand NewRiver REIT better, we need to consider many other factors. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free . If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Can Trump's Trade War With China Boost Apple's iPhone Sales?
The Trump administration is locked ina messy trade warwith China that isn't showing any signs of ending. The situation seems to be escalating day by day as both sides are unwilling to reach a compromise. President Trump has threatened to further raise tariffs on Chinese imports if there's no progress on trade talks at the end of this month.
There are a ton of companies and industries suffering thanks to the U.S.-China trade war, but there's one unlikely beneficiary that could witness a turnaround in its fortunes:Apple(NASDAQ: AAPL). The iPhone maker has been struggling to sell its premium devices thanks to the emergence ofHuawei, but Trump's trade war could prove to be a tailwind for Apple. Let's see why.
Image source: Getty Images.
Huawei has turned out to bea worthy competitorfor Apple in recent years. In fact, the Chinese company occupied the second place in global smartphone shipments in the first quarter of 2019 with a market share of 19%, according to IDC. This is a nice jump from the year-ago period's market share of 11.8%.
Apple's fortunes, on the other hand, have nosedived over the same period. The company has now slipped to third in global smartphone shipments with a market share of 11.7%. A year ago, Apple occupied the second spot with a market share of 15.7%. The iPhone maker's shipments fell an alarming 30% year over year during the first quarter, while Huawei saw a 50% spike.
However, Huawei's growth seems all set to take a hit as it is the poster boy of the U.S.-China trade war. The U.S. is going all-out to freeze Huawei, with the Trump administration blacklisting the Chinese conglomerate that's known for supplying networking gear and smartphones.
As Huawei is now on the U.S.'s Entity List, meaning any U.S. company looking to do business with the Chinese company will have to obtain an export license from the Commerce Department. As it turns out, the Department follows a policy of denying such applications, as reported by Politico.
Not surprisingly, Huawei is witnessing major fallout from this move as several companies are now unwilling to do business with the chipmaker. For instance,Western Digitalhasstopped shippingits data-storage products to the Chinese company.Alphabet's Google had also taken the step tosuspend its businesswith Huawei, restricting updates on the Chinese company's Android-powered devices.
Moreover, chipmakers such asBroadcom,Qualcomm, andXilinxare also stopping Huawei from using their products and technology.
Huawei claims that it has enough chips in storage to last for six months of smartphone production. At the end of those six months, it aims to start making its own chips, and also deploy its own operating system to replace Android. But there's one problem that Huawei might not be able to overcome.
British chip designer ARM has reportedly told employees to immediately stop providing services and technology to Huawei. That's because ARM licenses technology from U.S. companies as well, which is why it falls under the ambit of the U.S. ban on Huawei.
This is bad news for Huawei as 98% of smartphones globally contain at least one chip designed by ARM. This means Huawei will now have to design certain chips from scratch as it cannot license ARM technology anymore under the current scenario.
But the lack of parts and technology is just one side of the equation. As leading technology providers cut off their supplies to Huawei, consumers might lose confidence in the Chinese smartphone maker. This has the potential to dent sales, and probably allow Apple to claw back its smartphone market share.
Apple lost ground in the smartphone space to Huawei as the latter started deliveringcutting-edge productsat competitive prices. But the iPhone maker's sales could get a shot in the arm thanks to the U.S. ban on Huawei for a few simple reasons.
As I have already stated, Huawei runs the risk of losing consumer confidence. If you're worried that you might lose Android support to your smartphone, there's a good chance you might not buy a device from that brand.
Second, Apple is expected to remain unaffected (or less affected) by the U.S.-China trade war despite its manufacturing footprint in China. That's because Foxconn, which is Cupertino's largest manufacturing contractor, recently said that 25% of iPhone production capacity is outside of China. Foxconn went on to add that it has "enough capacity to meet Apple's demand," and it could move its entire production out of China if needed.
But even if Apple doesn't elect to move its production out of China and decides to absorb the costs of any tariff, the iPhone maker's earnings per share will take a hit of only 6% to 7%,Bloombergreports. Passing on the tariffs to customers could increase iPhone prices in a range of 9% to 16%, and that could reduce demand by 10% to 40%.
So, it would make sense for Apple to absorb the higher tariffs if they come into play later this month. That's because if Apple manages to eat into Huawei's market share, its sales should improve and help offset some of the margin losses.
Apple's sales in Europe fell nearly 23% in the first quarter of 2019, while Huawei's shipments had shot up 66%. As such, Apple has a lot to gain from Huawei's travails.
Moreover, Apple won't have to run from pillar to post for parts and technology like Huawei. So, it should ideally be able to produce phones in larger quantities compared to its Chinese rival, which now has to work on developing in-house chips.
As such, don't be surprised to see an uptick in iPhone sales as those who were looking to buy a Huawei device shift to Cupertino's offerings or other Android phones, making Apple an unlikely beneficiary of the U.S.-China trade war.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Harsh Chauhanhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A and C shares), and Apple. The Motley Fool owns shares of Qualcomm and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool recommends Broadcom Ltd and Xilinx. The Motley Fool has adisclosure policy. |
JetBlue Eyes New Long-Range Airbus Jets at Paris Air Show
The 2019 Paris Air Show has been extremely fruitful for the European plane-maker Airbus. Following the launch of new long-range narrow-body jets (A321XLRs) at the event on Jun 17, Airbus received its first order for 27 such jets from Air Lease AL — a leading aircraft leasing company. Subsequently, many airline heavyweights like American Airlines AAL have placed orders to the manufacturer for these single-aisle twin-jets.
Joining the bandwagon,JetBlue AirwaysJBLU has decided to convert 13 of its existing orders for the smaller Airbus A321neo to Airbus’ new offering as it aims to enter and subsequently expand in the trans-Atlantic market. The new planes are not only fuel-efficient but have an incredible 4700 nautical mile range. Following JetBlue’s decision, the Airbus order book for the newly-launched A321XLRs have exceeded 200. However, none of them are scheduled to be delivered before 2023.
We remind investors that, in April 2019, JetBlue announced its intention to start operating flights to London from Boston and New York in 2021. JetBlue, carrying a Zacks Rank #3 (Hold), intends to start operations using Airbus A321LR single-aisle aircraft. The move is aimed at competing with the likes of Delta Air Lines DAL and American Airlines, which have a significant presence in the trans-Atlantic market. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, this Long Island City, New York-based company’s decision to acquire A321XLRs (delivery anticipated to commence in 2023) is in sync with its intention to fly to additional European destinations (particularly in south, central and northern Europe) from the United States’ east coast.
In a bid to modernize its fleet further, JetBlue, which aims to deliver earnings of $2.50-$3 by 2020, has also converted options for 10 Airbus A220-300s (deliveries anticipated to commence in 2025) to firm orders. The low-cost carrier’s decision to order additional A220s is in line with its objective to expand in the Americas.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportJetBlue Airways Corporation (JBLU) : Free Stock Analysis ReportAmerican Airlines Group Inc. (AAL) : Free Stock Analysis ReportDelta Air Lines, Inc. (DAL) : Free Stock Analysis ReportAir Lease Corporation (AL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Delta Expands in Asia Via Investment in Korean Air's Parent
In a bid to strengthen its foothold in Asia,Delta Air LinesDAL bought a 4.3% stake in Hanjin Kal Corp. Subject to regulatory approvals, Delta plans to increase its stake to 10% in this largest shareholder of Korean Air Lines. Notably, Delta already has a joint venture (JV) with Korean Air.
The JV, launched in May 2018,enables both the carriers to share costs and revenues on flights apart from coordinating schedules, thereby enhancing connectivity between the United States and Asia. This trans-Pacific deal has resulted in the formation of a huge network, covering in excess of 290 and 80 destinations in the United States and Asia, respectively.
Additionally, the deal provides benefits to reciprocal frequent flyers as the carriers aim to increase traffic and boost revenues amid stiff competition. Notably, Delta and Korean Airare among the four founding members of the SkyTeam alliance in 2000.
The alliance is a key driver behind Delta’s first year-over-year growth in the Asia Pacific region since 2012. This is because flights connecting Minneapolis and Seoul as well as Seattle and Osaka have been launched this year, courtesy of the partnership. Delta’s desire to increase its stake in Korean Air’s parent company further highlights this Atlanta-based carrier’s intention to boost the already successful JV.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote
We remind investors that the highly lucrative Asian aviation market attracted Delta’s rival American Airlines AAL as well. American Airlines Group has a stake in China Southern Airlines ZNH.
Delta’s Investment — A Vote of Confidence in Hanjin Kal Management
Delta’s interest in Hanjin Kal is a blessing for the Korean company’s leadership. Notably, Hanjin Kal, a family-run company, has been engulfed in management-related controversies ever since the demise of Cho Yang-ho, the chairman of the Hanjin Group, in April.
Cho Won-tae was subsequently appointed as the group’s chairman — a move that has been questioned by the activist fund, Korea Corporate Governance Improvement (“KCGI”). Currently, KCGI’s disappointment pertaining to the group’s corporate governance is giving rise to fears about an ownership battle at the conglomerate.
In fact, Delta’s decision to invest in Hanjin Kal and subsequently increase its stake has thwarted KCGI’s desires to take control of the group. According to Reuters, in the event of Delta succeeding to increase its stake to 10%, the Cho family and its allies will have a 39% stake in Hanjin Kal compared with KCGI’s 16%.
Zacks Rank & A Key Pick
Delta carries a Zacks Rank #3 (Hold). A better-ranked stock in the broader Transportation sector is GATX Corporation GATX, carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmerican Airlines Group Inc. (AAL) : Free Stock Analysis ReportChina Southern Airlines Company Limited (ZNH) : Free Stock Analysis ReportDelta Air Lines, Inc. (DAL) : Free Stock Analysis ReportGATX Corporation (GATX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Vale to Restart Wet Processing Operations at Brucutu Mine
Vale S.A.VALE announced that it will resume wet processing operations at Brucutu mine as the Superior Court of Justice overruled a previous court ruling that suspended processing at the mine due to safety concerns regarding a nearby dam.Vale had earlier provided iron ore and pellets sales guidance at 307-332 Mt for fiscal 2019. The company now expects current sales volume to be at the mid-point of the range. It had earlier predicted sales volume between the bottom and the middle of the range.On Jan 25, 2019, a tailings dam failed at Vale’s Córrego do Feijão mine, in the city of Brumadinho, state of Minas Gerais, leading to 300 casualties and extensive property and environmental damage. Various Brazilian courts have ordered freezing of R$17.6 billion ($4.5 billion) of Vale’s financial assets to secure the payment of damages. The company suspended dividend and stopped all share buybacks. It also eliminated executive bonuses.Vale suspended various operations, either voluntarily or as a result of revocation of licenses or court orders which impacted the company’s iron ore annualized production by about 92.8 Mt.Following the accident, Vale’s Brucutu mine has been producing iron ore at an annual rate of 10 Mt, which is one-third of its total production capacity. It has been using ‘dry processing’ to avoid generation of muddy waste by-product. Behind Vale’s Carajás mine, Brucutu is the second largest iron ore operation in Brazil. It has been in operation for 13 years and is the biggest mine in the Minas Centrais Complex. Brucutu’s annual production capacity of 30 Mt of iron ore represents 8% of Vale’s annual output. So the resumption of full operations is a positive development for the company which has been hit hard by the dam disaster.Vale reported a loss of $1.6 billion or 32 cents per share in first-quarter 2019 — its first quarterly loss since the third quarter of 2015. This can primarily be attributed to the impact of the Brumadinho dam rupture. Revenues in fiscal 2019 will be lower owing to suspended operations. Further, as a result of the suspended operations, Vale may have to purchase iron ore and iron ore pellets from the market to meet its obligations under existing commercial contracts, which may lead to higher costs. The company may have to make investments or adjustments in the operations not impacted by the dam failure to increase production, mitigate the impact of suspended operations or comply with additional safety requirements. It may also have to utilize alternative disposal methods to continue operating certain of its mines and plants, particularly those that rely on tailings dams which may require significant capital investments in mines and plants. As a result, costs are expected to increase, which in turn will dent margins.The company will write off assets of the Córrego do Feijão mine and those related to the upstream dams in Brazil that will result in a loss of $124 million in 2019. Additional impairments, write-off or write-down of assets may be recognized in 2019. The company also has to make provisions for costs of decommissioning, and further remediation and legal proceedings.Vale’s “Value over Volume” Approach to Mitigate ImpactThe company is focusing on maintaining ‘”value over volume” approach for the iron ore business. Despite production constraints, Vale remains committed to delivering the highest possible margins by managing extensive supply chain and flexible product portfolio. The company strives for better price realization, based on adjustments to product portfolio according to market demand and supply chain optimization. The company is also focusing on improving quality and productivity, controlling costs, strengthening logistics infrastructure.The Brumadinho dam breach and the consequent capacity closures, and Cyclone Veronica in Australia negatively impacted iron ore supply. This led to fears of a supply crunch, which in turn aided the surge in iron ore prices. Although Vale’s production has gone down owing to the disaster, it will eventually benefit from rising iron ore prices.Price Performance
Shares of Vale have gained 7.0% over the past year, against the industry’s growth of 7.1%.Zacks Rank & Stocks to ConsiderVale currently carries a Zacks Rank #3 (Hold).A few better-ranked stocks in the Basic Materials space are Materion Corporation MTRN, Flexible Solutions International Inc. FSI and AngloGold Ashanti Limited AU, all currently sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 22.9% in the past year.Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have soared 181.7% in a year’s time.AngloGold has an estimated earnings growth rate of 90.6% for the ongoing year. Its shares have surged 95% in the past year.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportVALE S.A. (VALE) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Read This Before You Buy Newater Technology, Inc. (NASDAQ:NEWA) Because Of Its P/E Ratio
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll show how you can use Newater Technology, Inc.'s (NASDAQ:NEWA) P/E ratio to inform your assessment of the investment opportunity.What is Newater Technology's P/E ratio?Well, based on the last twelve months it is 8.11. That means that at current prices, buyers pay $8.11 for every $1 in trailing yearly profits.
View our latest analysis for Newater Technology
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Newater Technology:
P/E of 8.11 = $5.41 ÷ $0.67 (Based on the trailing twelve months to December 2018.)
A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Earnings growth rates have a big influence on P/E ratios. When earnings grow, the 'E' increases, over time. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
In the last year, Newater Technology grew EPS like Taylor Swift grew her fan base back in 2010; the 154% gain was both fast and well deserved. Even better, EPS is up 80% per year over three years. So you might say it really deserves to have an above-average P/E ratio.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. We can see in the image below that the average P/E (20.8) for companies in the machinery industry is higher than Newater Technology's P/E.
Its relatively low P/E ratio indicates that Newater Technology shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with Newater Technology, it's quite possible it could surprise on the upside. You should delve deeper. I like to checkif company insiders have been buying or selling.
The 'Price' in P/E reflects the market capitalization of the company. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
Newater Technology's net debt is 19% of its market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
Newater Technology trades on a P/E ratio of 8.1, which is below the US market average of 18. The company hasn't stretched its balance sheet, and earnings growth was good last year. The low P/E ratio suggests current market expectations are muted, implying these levels of growth will not continue.
Investors have an opportunity when market expectations about a stock are wrong. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
Of courseyou might be able to find a better stock than Newater Technology. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Boeing Crisis Continues as Airbus Steals Thunder in Air Show
The Boeing CompanyBA did not have an impressive start to its campaign at the ongoing International Air Show in Paris. Much of this was expected as the company has been battling a huge crisis for the past few months, thanks to the twin crashes involving its 737 aircraft.How Airbus Toppled Boeing at the Air ShowBoeing had a disappointing start to the air show as it failed to acquire fresh orders on the very first day. This came as a major blow to the company as its arch-rival — Airbus SE EADSY — took advantage of Boeing’s ailing condition. Airbus announced the launch of its A321XLR single-aisle airliner, backing up with 27 initial orders for the plane from Air Lease Corporation, which will replace Boeing’s aging fleet of 757 jets.Things, however, started looking up for Boeing over the course of the event. After being on a turbulent ride for the past three months, the company finally sold 20 787-9 and 787-10 Dreamliner jets to Korean Air, marking its first sale since mid-March. Also, ASL Aviation Holdings DAC jointly announced an agreement with Boeing for the acquisition of 20 737-800 Boeing Converted Freighters, which includes 10 confirmed orders.Nonetheless, these orders were insufficient to edge past Airbus SE that successfully acquired 320 orders compared to Boeing’s 270, per a report by Vertical Research Partners. Furthermore, Boeing lagged in acquiring significant firm orders at the show, as most of the prospective ones came in the form of commitments. Additionally, Boeing trailed Airbus in the emerging long-range, midsize jet market.A Ray of Hope for BoeingNevertheless, amid successful launch of Airbus’ A321XLR single-aisle airliner, Boeing still found a reason to cheer in the Paris Air show. The relief came from the International Airlines Group that announced its intention of purchasing 200 Boeing 737 MAX Airplanes, which would be valued at more than $24 billion, per list prices. Encouragingly, such developments will provide the company with the boost to resolve the prevailing problems with its 737 aircraft.Price Performance ComparisonShares of Boeing have gained only 16.2% year to date compared with the industry’s growth of 20.5%, while Airbus has appreciated 46.8%. This clearly underlines Boeing’s business slowdown in the global aviation market.
Zacks Rank & Key PicksBoeing currently carries a Zacks Rank #3 (Hold).A few other top-ranked stocks in the same sector are Wesco Aircraft Holdings WAIR, and Northrop Grumman Corp. NOC, each carrying a Zacks Rank #2 (Buy), at present. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Wesco Aircraft’s long-term growth estimates currently stand at 12%. The Zacks Consensus Estimate for 2019 earnings has increased 3.7% to 84 cents in the past 60 days.Northrop Grumman came up with an average positive earnings surprise of 18.50% for the last four quarters. The Zacks Consensus Estimate for the ongoing year’s earnings moved 2.26% north to $19.42 in 60 days’ time.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportNorthrop Grumman Corporation (NOC) : Free Stock Analysis ReportThe Boeing Company (BA) : Free Stock Analysis ReportAirbus Group (EADSY) : Free Stock Analysis ReportWesco Aircraft Holdings, Inc. (WAIR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Does The Northern Vertex Mining Corp. (CVE:NEE) Share Price Fall With The Market?
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Anyone researching Northern Vertex Mining Corp. (CVE:NEE) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Check out our latest analysis for Northern Vertex Mining
Zooming in on Northern Vertex Mining, we see it has a five year beta of 1.43. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. Based on this history, investors should be aware that Northern Vertex Mining are likely to rise strongly in times of greed, but sell off in times of fear. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Northern Vertex Mining's revenue and earnings in the image below.
With a market capitalisation of CA$52m, Northern Vertex Mining is a very small company by global standards. It is quite likely to be unknown to most investors. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
Beta only tells us that the Northern Vertex Mining share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether NEE is a good investment for you, we also need to consider important company-specific fundamentals such as Northern Vertex Mining’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are NEE’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has NEE been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of NEE's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The GOP Doesn't Want Roy Moore to Run for Senate. But He's Doing It Anyway
Never one to back down from a fight, Republican Roy Moore is facing a wall of GOP opposition that includes President Donald Trump as he launches another U.S. Senate bid, testing whether he can overcome the sexual misconduct allegations that helped derail his last run.
The question is whether conservative Alabama voters who only narrowly rejected Moore in favor of Democrat Doug Jones will now be willing to side with a maverick known for opposing gay marriage and defending his courthouse display of the Ten Commandments.
Moore, a one-time kickboxer who was twice removed as Alabama’s chief justice for disciplinary reasons, took on national Republican leaders and others in announcing his 2020 campaign on Thursday.
“People in Alabama are not only angry, they are going to act on that anger. They want Washington, and other people outside their state, out of this election,” Moore said. He blamed his 2017 loss to Jones on “a fraud.”
Despite allegations that he made sexual advances on young women decades ago — claims that helped put a reliably red seat in the Democratic column in 2017 — Moore cast himself as a righteous servant who evokes fear inside the Beltway.
“Why does the mere mention of my name cause people to get up in arms in Washington D.C?” added Moore. “Is it because I believe in God, and marriage and morality in our county? … Are these things embarrassing to them?”
Critics of Moore’s decision included Alabama’s senior senator.
“Alabama can do better than Roy Moore,” Republican Sen. Richard Shelby told reporters shortly before Moore’s announcement. Of the possibility of Moore securing the GOP nomination, he added: “I don’t think it’s good for the party nationally. … I don’t think it would help the president, I don’t think it would help anybody running.”
Senate Majority Leader Mitch McConnell was similarly blunt.
“He can do what he wants to, but we’re certainly going to oppose him in every way,” the Kentucky Republican said before Moore’s announcement.
Trumptweetedlast month that Moore “cannot win” and said Republicans need to retake the seat to preserve what his administration has accomplished.
“Republicans cannot allow themselves to again lose the Senate seat in the Great State of Alabama,” Trump tweeted.
Asked whether Trump would support or oppose Moore, Erin Perrine — a spokeswoman for the president’s re-election campaign — said only that “I refer you to the president’s previous tweets on the matter.”
During the 2017 race, several women accused Moore of pursuing romantic or sexual relationships with them when they were teenagers and he was an assistant district attorney in his 30s. Two accused him of assault or molestation.
Moore denied the accusations and has said he considered his 2017 defeat, when he lost to Jones by 22,000 votes out of 1.3 million cast, a fraud.
He currently faces a defamation lawsuit from Leigh Corfman, who said Moore touched her sexually when she was 14 after meeting her at the courthouse. Moore has countersued Corfman and other accusers.
Moore’s entry upends an already crowded GOP primary field competing to challenge Jones.
U.S. Rep. Bradley Byrne, former Auburn University football coach Tommy Tuberville, legislator Arnold Mooney and businessman Stanley Adair have already announced bids and others are expected to enter the race.
Moore retains a strong following among some evangelical voters. He was twice elected the state’s chief justice but was twice stripped of those duties after a judicial ethics panel said he defied, or urged defiance of, federal court orders regarding same-sex marriage and the public display of the Ten Commandments.
His loyal following propelled him to victory in the 2017 primary and could give him another boost in 2020.
“I’m a hundred percent behind Judge Moore,” said Tim Sprayberry of Cleburne County, a supporter at Thursday’s announcement. “Judge Moore is one of the few candidates that I have ever seen that will tell you he is going to do something, and he does it regardless of what the consequences to him personally or his political career.”
Republican pollster Brent Buchanan said the crowded GOP primary will likely head to a runoff and said Moore is in the “catbird seat to have a spot in a runoff.”
But Steven Law, president of a GOP political committee linked to McConnell, said Moore faces tougher challenges this time around. That include competition vying for the same conservative religious voters who comprise the heart of Moore’s support and a less divided GOP, which in 2017 saw former Trump adviser Stephen Bannon helping insurgents like Moore.
“It’s a harder road for him this time,” said Law, who heads the Senate Leadership Fund.
—Trump’sMAGA rallies cost big bucks—and cities foot the bills
—Black women voterswill be central to the 2020 election, experts predict
—Can Trump fire Fed Chair Jerome Powell?What history tells us
—Alexandria Ocasio-Cortez’s message for democrats after“boy bye” tweet
—What you need to know about theupcoming 2020 primary debates
Get up to speed on your morning commute withFortune’sCEO Dailynewsletter. |
Inspiron 3000 Touch all-in-one computer is $159 off at Dell
TL;DR:The versatileInspiron 3000 Touchall-in-one is $159 off, meaning you pay just $529.99 for the desktop system.
TheInspiron 3000 Touchtruly is anall-in-onemachine. It’s a whole desktop system in one compact packaging — plus, it has a touchscreen. All these perks sound like they might cost you a lot, but you can grab the Inspiron 3000 Touchon sale for $529.99 at Dell, a price drop of $159.
This 22-inch desktop has advanced streaming, making it ideal for watching video or chatting. It features a Full HD, wide-angle IPS touchscreen display with a pop-up webcam. (We weren’t lying about it being great for video chatting.)Read more...
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Is Credit Life Insurance Worth It?
You may be offered credit life insurance when you take out certain loans, such as a mortgage or car loan. While it may look like any other life insurance policy at a first glance, credit life insurance has some unique features. Here's what you should know about it and how it works before you buy a policy. What Is Credit Life Insurance? Credit life insurance is life insurance designed to pay off specific debt in the event of death, unemployment, illness or another event that may inhibit your ability to pay. When you take out a loan, the lender may offer you a credit life insurance policy. This policy is issued through an insurance company that the lender partners with. The initial face value amount of the policy is equal to your loan amount. The policy's face value decreases over time as you pay down the loan balance. Premiums for credit life insurance are typically rolled into your monthly loan payments, and coverage begins when the loan is originated. If you die before the loan is repaid in full, your credit life insurance policy would cover the remainder of the loan, with policy proceeds paid directly to the lender to satisfy your remaining balance. [ Read: Best Personal Loans. ] Credit life insurance is different in many ways from a traditional term or permanent life insurance policy . With those, you choose the amount of coverage, rather than having coverage determined for you by a loan balance. The face value, or death benefit amount, typically remains the same for the life of the policy. Traditional life insurance proceeds are paid to the beneficiary or beneficiaries named in the policy to use as they see fit, rather than being paid out to the lender exclusively for paying off your loan. Benefits of Credit Life Insurance The chief advantage of having credit life insurance in place is reassurance. If you were to die leaving a large loan balance behind, your policy would be there to pay it off. That means your loved ones aren't left with the responsibility of satisfying the debt. If you're married with young children, for example, credit life insurance could pay off your mortgage and allow your family to remain in the home. Story continues "Credit life insurance is often an affordable option to cover larger debts, such as a mortgage or car loan," says Jason Hargraves, managing editor of insurance industry analysis website insuranceQuotes.com. "The policy only covers the length of a debt, and once the loan is paid off, then the policy ends. It's a simple and affordable policy that's easy to purchase." Unlike traditional life insurance coverage, credit life insurance doesn't require you to pass a medical exam to qualify. Your lender may offer this optional coverage, and you get to decide if you'd like to buy it. The premiums for credit life insurance can vary, based on the type of loan and the loan amount. Your policy may include supplemental coverage for events other than death. For example, you may be covered against disability. If you're hurt or ill and can't work temporarily, your policy could make a limited number of monthly payments to your loan so you don't fall behind. That can help if you don't have emergency savings or a separate disability policy in place and you're worried about losing your car or home for nonpayment. [ Read: Best Debt Consolidation Loans. ] Credit life insurance can also extend similar coverage if you become unemployed through no fault of your own. And some policies may offer protection for collateral such as the car or home you're buying in the event that it's destroyed before the loan is paid off. Downsides to Credit Life Insurance Purchasing credit life insurance also has a few potential flaws. For example, having the lender as the beneficiary rather than a loved one of your choosing means there's no flexibility with these policies. If you die, your coverage can only pay off the specific debt it's underwritten to cover. While credit life insurance could help pay off a specific loan, your loved ones couldn't use the coverage to address any other debts you leave behind. A single-premium credit life insurance policy rolled into the cost of your loan and paid monthly can make premiums easier to manage. But you'll pay interest on the premiums over the life of the loan, which automatically increases the cost of coverage. Your premiums stay the same for the entire loan term, so you're basically paying for less coverage as time goes on. Another potential snag may lie in the fine print. For instance, your policy may include disability or unemployment coverage but only pay out for a limited period of time. If you remain disabled or unemployed beyond the time frame established by the policy, keeping up with your loan payments could prove difficult. Or you may need to be employed for a set time period or earn a certain amount before disability coverage kicks in. While your insurer may not require a health exam to get covered for credit life insurance, it may deny the policy's claim when you die if it turns out you had a pre-existing health condition. Should You Buy Credit Life Insurance? The answer depends largely on your needs and whether you have (or could qualify for) other life insurance policies that could help with paying off debt or other expenses when you die. A traditional life insurance policy gives you more flexibility but may be more difficult to obtain. Your age and financial situation can help determine the true value of credit life insurance for you, Hargraves says. Keep in mind that credit life insurance policies may have an age cutoff for coverage. Someone in their 60s buying a vacation home, for example, may not be eligible for this type of life insurance because the insurance company may consider age too much of a risk factor. Your health is something else to consider before buying credit life insurance. Michael Foguth, president and founder of Foguth Financial Group in Brighton, Michigan, says the minimal underwriting required for credit life insurance may mean it's easier to get covered for credit life insurance versus a regular life insurance policy if you have a pre-existing condition. But again, keep in mind that pre-existing conditions may count against you when it's time for the policy to pay out. [ Read: Best Mortgage Lenders. ] Review Your Credit Life Insurance Alternatives Carefully It's possible that a traditional life insurance policy may better suit your needs. Consider the costs involved in buying credit life insurance and compare that with what you might pay for a term or permanent life insurance policy instead. Generally, the younger and healthier you are when you purchase a term life insurance policy, the lower your premiums are likely to be. Purchasing a permanent (or whole) life insurance policy typically means paying higher premiums than other life insurance options, including credit life insurance. But it offers the ability to build cash value. This cash value can grow with interest , and you can borrow against it if needed. Credit life insurance doesn't have this feature. Foguth offers another tip: Check to see what type of life insurance coverage you may already have in place. For example, your employer might include a small term life policy in your benefits package. If you don't need life insurance beyond the amount you already have in place to pay off debts, then buying a credit life policy could be a waste of money. Consider getting advice from an insurance expert before you buy if you're still undecided because "you might find several products that better fit your situation in life," Hargraves says. More From US News & World Report How Much Life Insurance Do You Need? What to Do With an Expensive Life Insurance Policy 3 Ways to Use Life Insurance While You're Still Alive |
Bitcoin nears $10,000 as total value of all cryptocurrencies surpasses $300 billion
On November 28, 2017, the price of one bitcoin hit the magical figure of $10,000. At the time, it seemed ridiculous; Bitcoin was this weird internet money that wasn't quite money and that cost a couple hundred dollars per coin just a year ago.
The second most popular cryptocurrency at the time, Ethereum, had an even crazier run: from about 10 bucks early in the year to $480. Both cryptocurrencies then continued to rally before crashing far below those levels in 2018.
Now, Bitcoin is once again on the brink of reaching $10,000, and Ethereum is very near $300, for the first time in nearly a year.Read more...
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Did Changing Sentiment Drive Northcliff Resources's (TSE:NCF) Share Price Down A Worrying 68%?
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We think intelligent long term investing is the way to go. But no-one is immune from buying too high. For example, after five long years theNorthcliff Resources Ltd.(TSE:NCF) share price is a whole 68% lower. That's not a lot of fun for true believers. And it's not just long term holders hurting, because the stock is down 40% in the last year. Furthermore, it's down 20% in about a quarter. That's not much fun for holders. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers inour company report.
View our latest analysis for Northcliff Resources
Northcliff Resources didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. For example, investors may be hoping that Northcliff Resources finds some valuable resources, before it runs out of money.
We think companies that have neither significant revenues nor profits are pretty high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Northcliff Resources investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Northcliff Resources had cash in excess of all liabilities of CA$1.6m when it last reported (April 2019). That's not too bad but management may have to think about raising capital or taking on debt, unless the company is close to breaking even. With the share price down 20% per year, over 5 years, it seems likely that the need for cash is weighing on investors' minds. The image below shows how Northcliff Resources's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Would it bother you if insiders were selling the stock? I would feel more nervous about the company if that were so. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
While the broader market gained around 1.6% in the last year, Northcliff Resources shareholders lost 40%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 20% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Avon Teams Up With HCL Technologies to Boost Digital Growth
Avon Products, Inc.AVP recently announced its partnership with HCL Technologies. Following the deal, HCL Technologies will serve Avon’s infrastructure services partner. In sync with its 'Open Up Avon' strategy, this latest agreement marks an important step toward digitalization of the company’s business.Leading global technology company, HCL Technologies, is expected to support Avon in revamping its IT infrastructure services and systems to enhance quality, scope, and efficiency. These activities also cover data centres, network, security and end-user computing services along with service desk. In fact, this technology leader will employ state-of-the-art service-management equipments in order to build Avon's infrastructure services more efficient and agile.Moreover, the latest agreement includes HCL's Mode 1-2-3 vision, hence will drive automation, cloud, standardization and service to produce impressive business results and end-user experience. This will also help the beauty leader to generate cost savings by improved service levels and capabilities for Avon's Representatives worldwide.Meanwhile, the company remains on track with the 'Open Up Avon' strategy, which is aimed at bringing Avon back to the growth trajectory. This strategy mainly focuses on reviving its direct selling business, renovating the brand, enhancing e-commerce and other capabilities to aid a performance-driven transformation.Impressively, Avon is capitalizing on the growth opportunities in the fast-growing e-commerce realm, making this platform a major growth driver. The company also remains committed to improve digital tools and e-commerce channel for driving sales and Representative experience. To this end, it created dedicated e-commerce business units in all key markets during fourth-quarter 2018. This helped Avon in steadily expanding the percentage of sales.While My Avon e-commerce store is present in about 25 markets, digital Avon brochure is now available in all markets and reached 6 million page views. Further, conversion rates expanded from 2.5% to 4%. In 2019, the company targets doubling e-commerce sales.
Price PerformanceBacked by these positive endeavors, shares of this Zacks Rank #1 (Strong Buy) stock have surged 43.1% in the past three months, comfortably outperforming the industry’s 11.4% rally. You can seethe complete list of today’s Zacks #1 Rank stocks here.3 Other Key PicksThe Estee Lauder Companies Inc. EL delivered positive earnings surprise in each of the trailing four quarters, the average being 14.2%. The company carries a Zacks Rank #2 (Buy).Helen of Troy Limited HELE is also a Zacks Rank #2 stock, which delivered average positive earnings surprise of 15.9% in the last four quarters.Medifast, Inc. MED delivered average positive earnings surprise of 9.1% in the last four quarters. The company carries a Zacks Rank of 2.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Estee Lauder Companies Inc. (EL) : Free Stock Analysis ReportHelen of Troy Limited (HELE) : Free Stock Analysis ReportAvon Products, Inc. (AVP) : Free Stock Analysis ReportMEDIFAST INC (MED) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
What's in Store for Constellation Brands' (STZ) Q1 Earnings?
Constellation Brands, Inc.STZ is scheduled to release first-quarter fiscal 2020 results on Jun 28.Notably, this leading wine company delivered a positive earnings surprise in the preceding three quarters. Further, it posted an average trailing four-quarter beat of 6.5%.How Are Estimates FaringThe Zacks Consensus Estimate for first-quarter earnings stands at $2.09, indicating a 5% decline from the year-ago reported figure. However, the consensus mark remained stable over the past 30 days. For quarterly revenues, the consensus estimate is pegged at $2.06 billion, indicating a 0.8% rise from the prior-year reported figure.
Constellation Brands Inc Price and EPS Surprise
Constellation Brands Inc price-eps-surprise | Constellation Brands Inc Quote
Factors at PlayConstellation Brands has been displaying strength, which is quite evident from its consistent earnings record and strong beer business. The company is also poised to gain from exposure in the cannabis space with its investment in Canopy Growth. Furthermore, its constant brand-building efforts, acquisitions and pipeline of innovations are commendable.Strength in Constellation Brands’ beer business has been a key growth driver. In fourth-quarter fiscal 2019, sales for the beer business improved 9.3%, marking the 36th straight quarter of growth. In fact, this beer business was the most significant contributor to the U.S. beer market during the fiscal fourth quarter, courtesy of gains at the Modelo Especial, Corona Premier and Corona Familiar brands. These brands were aided by superb distribution gains and strong innovations.Additionally, Constellation Brands’ consistent focus on brand building and initiatives to include new products has been aiding top-line growth. Owing to its strategic endeavors, the company is experiencing increasing market share, especially in the U.S. beer category. Moreover, it expects to expand consumer marketing efforts in fiscal 2020, with new sponsorship opportunities.Backed by all these initiatives, Constellation Brands is likely to witness solid top- and bottom-line improvements in the to-be-reported quarter.However, softness in the company’s wine & spirits business remains a major concern. Lower shipment volumes and depletions have been weighing on the segment’s sales. Although Constellation Brands has announced divestiture of nearly 30 low-end brands from the wine & spirits portfolio, the segment’s growth might take time.Further, the company issued an unimpressive outlook for fiscal 2020 owing to impacts from the adjustments related to losses from the Canopy Growth deal (mostly higher interest expense) and other activities as well as the wine and spirits divestitures. This, in turn, might hurt Constellation Brands’ performance in first-quarter fiscal 2020.What the Zacks Model PredictsOur proven model conclusively shows that Constellation Brands is likely to beat earnings estimates in first-quarter fiscal 2020. A stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Constellation Brands has a Zacks Rank #2 and an Earnings ESP of +4.42%.Other Stocks Poised to Beat Earnings EstimatesHere are some other companies that you may want to consider as our model shows that these too have the right combination to deliver an earnings beat:General Mills, Inc. GIS has an Earnings ESP of +1.18% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.Helen of Troy Limited HELE has an Earnings ESP of +0.60% and a Zacks Rank #2.Snap-on Incorporated SNA has an Earnings ESP of +0.58% and a Zacks Rank #3.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportConstellation Brands Inc (STZ) : Free Stock Analysis ReportHelen of Troy Limited (HELE) : Free Stock Analysis ReportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportSnap-On Incorporated (SNA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
AP names Sally Stapleton to manage new global religion team
NEW YORK (AP) — Sally Stapleton, an award-winning editor, photojournalist and newsroom leader, has been tapped to direct global religion coverage for The Associated Press, overseeing a new team that will report on faith and its influence throughout the world.
The appointment was announced Friday by Sarah Nordgren, AP's deputy managing editor for sports, business, entertainment, health, science and religion.
As global religion editor, Stapleton will lead a team funded by a $4.9 million grant from the Lilly Endowment Inc. to the Religious News Foundation.The AP will work with Religion News Service and The Conversationto improve understanding of developments in the world of faith and analyze their significance.
Stapleton, 61, was managing editor of the Pittsburgh Post-Gazette from 2017 until April of this year and led that newsroom's transformation to a digital-first operation. The staff of the Post-Gazette received the2019 Pulitzer Prize in Breaking News Reporting for its coverage of the Tree of Life synagogue hate-crime massacre.
"Sally is the right kind of leader for this important launch of a new AP coverage team," Nordgren said. "She has a record of producing top-level coverage on religion, and she understands how to produce and present great multi-format content for readers around the world."
Stapleton served on the board of directors for the Associated Press Media Editors organization for the past three years. She previously was managing editor of The Day in New London, Connecticut, where she oversaw website and mobile transformations. The Day's website won the New England Newspaper Association's website of the year three times during her tenure.
From 1990 to 2004, Stapleton worked in a variety of photo leadership positions for the AP, including deputy executive photo editor, overseeing all aspects of AP's photo operation.
During that time, she oversaw two photography teams that were recognized with Pulitzer Prizes. One involved Rwanda genocide coverage in 1995, the other the simultaneous U.S. embassy bombings in Nairobi, Kenya, and Dar es Salaam, Tanzania, in 1999. Before joining the AP, Stapleton held photo and news graphics. editor positions at The Boston Globe, the Miami Herald and the Minneapolis Star Tribune.
Stapleton received a master's degree in photojournalism and a bachelor's degree in journalism from the University of Missouri. She speaks Spanish and French, and for the past 15 years, she has led The Great Lakes Media Institute, which provides journalism training in the Great Lakes region of Africa.
The grant from the Lilly Endowment for the AP's new religion team represents one of the biggest investments in religion news coverage in decades. The initiative will create a joint news desk to produce multi-format coverage of major faiths, with a focus on illuminating the religious practices and principles that underlie current events and cultural movements.
To help build the initiative, the AP will hire eight religion journalists, and the Religion News Service will hire three. The Conversation will add two editors. The organizations will also hire additional business staff to help administer the grant. Each of the three organizations will retain editorial control of its content, which will be labeled and distributed by the AP. |
Geopolitical Conflict in Iran Intensifies
On the heels of another robust trading day — bringing the S&P 500 index to all-time highs, as well as striking distance of 3000 points — we’re seeing a slight pullback this morning in the pre-markets. Perhaps a bit of this is booking profits at the end of the third-straight up-weeks on major U.S. indexes, but growing tensions in the Middle East may have something to do with it, as well.
Last night, a military strike on select defense bases in Iran was called off at the last minute by President Trump, against the interests of Secretary of State Mike Pompeo and National Security Advisor John Bolton. Missile silos and radar stations were in the sites of the U.S. military aircraft, already airborne, at the time of the stand-down order from the Commander in Chief.
Obviously, tensions have increased greatly in the region, following the shooting down of an American drone over the Strait of Hormuz, which followed attacks on foreign oil tankers near the strait that the U.S. blamed on Iranian aggression. All of this came after Trump tore up the accord the Obama administration had reached with the Islamic republic, whereby nuclear proliferation would be halted and trade embargoes lifted. Now Iran is announcing it is reconstituting its nuclear capacities.
What happens next is anyone’s guess. It is not immediately clear why Trump changed his mind on the military mission, so it’s too early to say whether tensions are cooling in the region or not.
Also, a massive explosion at an oil refinery — the largest and oldest on the Eastern Seaboard — occurred overnight at the Philadelphia Energy Solutions Refining Complex. Amazingly, no one was killed in the blast. This morning, reports are that the fire has been contained but not fully put out. The refinery produces over 330K barrels per day.
Oil futures are up on the news, but only slightly, although gasoline futures are likely to head northward today. Fortunately, this disaster did not happen while a majority of the plant’s workforce was on the job. We will monitor this situation as the day goes on, as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportTo read this article on Zacks.com click here.Zacks Investment Research |
If You Had Bought Northcliff Resources (TSE:NCF) Stock Five Years Ago, You'd Be Sitting On A 68% Loss, Today
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Statistically speaking, long term investing is a profitable endeavour. But unfortunately, some companies simply don't succeed. Zooming in on an example, theNorthcliff Resources Ltd.(TSE:NCF) share price dropped 68% in the last half decade. That's an unpleasant experience for long term holders. And we doubt long term believers are the only worried holders, since the stock price has declined 40% over the last twelve months. The falls have accelerated recently, with the share price down 20% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers inour company report.
View our latest analysis for Northcliff Resources
Northcliff Resources didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). It seems likely some shareholders believe that Northcliff Resources will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). It certainly is a dangerous place to invest, as Northcliff Resources investors might realise.
When it last reported its balance sheet in April 2019, Northcliff Resources had cash in excess of all liabilities of CA$1.6m. That's not too bad but management may have to think about raising capital or taking on debt, unless the company is close to breaking even. With the share price down 20% per year, over 5 years, it seems likely that the need for cash is weighing on investors' minds. The image below shows how Northcliff Resources's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? I would feel more nervous about the company if that were so. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
While the broader market gained around 1.6% in the last year, Northcliff Resources shareholders lost 40%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 20% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
Of courseNorthcliff Resources may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
General Mills, Douglas Dynamics, CDW, Applied Materials and Microsoft highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 21, 2019 – Zacks Equity Research Shares of General Mills GIS as the Bull of the Day, Douglas Dynamics PLOW asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on CDW Corporation CDW, Applied Materials, Inc. AMAT and Microsoft MSFT.Here is a synopsis of all five stocks:
Bull of the Day:
Guess what folks? The market is at all-time highs. You can go ahead and rejoice now, thanking the FOMC for their upcoming easing. Now if we can get a trade deal done, there will be no stopping us at all. With all this momentum, it may feel like you can run out there and buy any stock that shows up on your computer screen. I’m going to warn you against that. Eventually, the momentum will die down and those stocks with strong earnings trends will hang in there. One way to find stocks with strong earnings trends is by leaning on the power of the Zacks Rank.
Today’s Bull of the Day is a stock in the good graces of the Zacks Rank. It’s Zacks Rank #1 (Strong Buy)General Mills.General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit, and savory snacks, as well as organic products, including refrigerated yogurt, nutrition bars, meal kits, salty snacks, ready-to-eat cereal, and grain snacks.
The reason for the favorable rank lies in the series of earnings estimate revisions to the upside. Over the last thirty days, three analysts have increased their estimates for the current year and next year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current year to $3.15 while next year’s number is up at $3.35.
You can see the strong move in earnings estimates on the Price, Consensus and EPS Surprise Chart. Estimates bottomed out late last year, then began to move upwards. You can see the upswing in not only 2018 estimates, but also a nice trend higher for 2019 and 2020. The gaps between these lines shows the year-over-year growth upcoming as well.
Bear of the Day:
Finally, the market is back to trading at all-time highs. We can thank the FOMC for their contributions with their upcoming easing. Now if we can get a US-China trade deal done, there will be no stopping us at all. With all this momentum, it may feel like you can run out there and buy any stock that shows up on your computer screen. I’m going to warn you against that. Eventually, the momentum will die down and those stocks with weak earnings trends will come under pressure. One way to avoid these weak trends is by leaning on the Zacks Rank. Those stocks with favorable Zacks Ranks have very strong earnings trends. Those with weak ranks, have been coming under pressure.
Today’s Bear of the Day is a stock with a weaker earnings trend. I’m talking about Zacks Rank #5 (Strong Sell)Douglas Dynamics.Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment primarily in North America. It operates in two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light and heavy duty trucks, as well as various related parts and accessories.
The Automotive – Replacement Parts industry is in the Bottom 14% of our Zacks Industry Rank. Douglas Dynamics is a Zacks Rank #5 (Strong Sell). The reason for the unfavorable rank lies in recent earnings estimate revisions to the downside coming from analysts. Looking at the next quarter number, analyst has dropped his number, bringing down our Zacks Consensus Estimate from 54 cents to 43 cents. That 43-cent number would represent a 2.2% contraction in earnings. Current year growth estimates are for 3.9%.
It’s important to point out that next year’s EPS growth looks better. In fact, over the last sixty days, analysts have increased their numbers for next year. That’s pushed up the Zacks Consensus Estimate from $2.35 to $2.42. While next quarter could be a little rough, things are looking much better over the long-term.
Investors looking for other stocks within the same industry with more favorable ranks are not going to find much. The best Zacks Rank in the industry is a Zacks Rank #3 (Hold).
Additional content:
3 Tech Stocks for Dividend Investors to Buy
Tech stocks are likely to remain some of the most desirable on the market for years to come. But investors who want to be a part of the technology industry don’t just have to search for high-flying growth stocks. Instead, tech-minded investors can take a page out of the income investing book and focus on companies with solid dividends.
Finding a strong dividend-yielding tech stock might seem difficult, but investors should not feel too intimidated. For example, Apple and some of the other biggest names in tech, pay dividends. And dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, which is a great one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and you will find some of the best tech stocks for dividend investors to target.
With all that said, check out these three dividend-paying tech stocks to buy right now:
1. CDW Corporation
CDW is a multi-brand technology solutions powerhouse that works with enterprise-level firms, governments, and more across the U.S., Canada, and the UK. The Lincolnshire, Illinois-based company’s portfolio is made up of over 1,000 brands and 100,000 products that range from security offerings to cloud computing solutions. CDW is coming off a better-than-projected first quarter of 2019 and has seen its stock price soar 37% in 2019. Shares of CDW opened at $106.48 on Thursday, not too far off their 52-week high.
Along with its strong first quarter and impressive price movement, CDW declared a new quarterly cash dividend of $0.295 per common share, which marked a 40% increase over last year’s dividend. The tech firm currently pays a $1.18 annualized dividend, with a 1.12% yield. Looking ahead, our current Zacks Consensus Estimates call for the company’s adjusted fiscal 2019 earnings to climb 11.6% on 7.3% revenue growth. Meanwhile, the firm’s price/sales ratio of 0.92 marks an impressive discount compared to its industry’s 2.15 average. And CDW has seen its earnings estimate revision activity trend completely upward recently for fiscal 2019 and 2020, which helps CDW earn a Zacks Rank #2 (Buy). The firm also sports an “A” grade for Momentum and “Bs” for both Value and Growth.
2. Applied Materials, Inc.
Chip stocks got a boost earlier this week on optimism regarding a possible resolution to the ongoing U.S.-China trade war. This helped lift shares of Applied Materials, which are now up roughly 31% in 2019. Despite the climb, AMAT stock still rests 14% below its 52-week high at $43.44 per share through late morning trading Thursday. Like many other chip firms, Applied Materials’ 2019 earnings and revenue are projected to fall, thanks to a multitude of factors within the historically cyclical semiconductor industry
Despite the current downturn, the semiconductor equipment maker’s long-term outlook is more positive. The firm’s 2020 revenues are projected to jump 8.5% above our current-year estimate to help lift earnings 18.3% higher than 2019’s estimate. Meanwhile, AMAT’s board recently approved a 5% increase to its quarterly cash dividend from $0.20 to $0.21 per share to help lift its yield to 1.98%. On top of that, Applied Materials’ P/E of 14.29 matches its industry’s average and its price/sales ratio of 2.52 represents a discount against its industry’s 3.07. AMAT is Zacks Rank #2 (Buy) right now, based, in large part, on its positive longer-term earnings estimate revision activity.
3. Microsoft
Microsoft stock counties to hit new all-time highs, which it did once again Thursday. Shares of MSFT are now up 37% in 2019 and touched $137.66 in morning trading. The tech titan is currently the world’s most valuable public firm, with a market cap just over $1 trillion. Microsoft’s legacy Windows and Office businesses have evolved and continue to drive growth. In recent years, however, MSFT’s cloud computing unit has grabbed Wall Street’s attention as the firm’s division, highlighted by Azure, has turned Microsoft into the second largest cloud player behind only Amazon.
In recent weeks, Microsoft has detailed some of its plans to enter the nascent cloud gaming market in an effort to expand its video game strength for the next era, as Google aims to break in this fall. This includes a partnership with gaming rival Sony. MSFT’s current full-year earnings are projected to climb 18% on the back of 13.1% revenue growth. Microsoft has paid out a $0.46 per share quarterly dividend throughout fiscal 2019, for an annualized payout of $1.84 a share. Microsoft’s current dividend represented a 9.5% jump from the prior year’s quarterly payout, while its yield sits at 1.36%. MSFT is a Zacks Rank #2 (Buy) that also rocks a “B” grade for Growth and an “A” for Momentum.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCDW Corporation (CDW) : Free Stock Analysis ReportDouglas Dynamics, Inc. (PLOW) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportApplied Materials, Inc. (AMAT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is It Too Late To Consider Buying National Instruments Corporation (NASDAQ:NATI)?
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National Instruments Corporation (NASDAQ:NATI), which is in the electronic business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $47.71 at one point, and dropping to the lows of $38.12. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether National Instruments's current trading price of $40.33 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at National Instruments’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for National Instruments
National Instruments appears to be overvalued according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 34.64x is currently well-above the industry average of 18.33x, meaning that it is trading at a more expensive price relative to its peers. Another thing to keep in mind is that National Instruments’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. National Instruments’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
Are you a shareholder?NATI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe NATI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on NATI for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for NATI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on National Instruments. You can find everything you need to know about National Instruments inthe latest infographic research report. If you are no longer interested in National Instruments, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Zacks.com featured highlights include: Avon Products, Hallmark Financial Services, DHI, Anglo American and Toray Industries
For Immediate Release
Chicago, IL – June 21, 2019 - Stocks in this week’s article are Avon Products, Inc. AVP, Hallmark Financial Services, Inc. HALL, DHI Group, Inc. DHX, Anglo American plc NGLOY and Toray Industries, Inc. TRYIY.
5 Bargain Breakout Stocks for Superlative Returns
Selecting breakout stocks is probably one of the most favored techniques among active investors. The idea behind this kind of stock selection is to determine stocks that are trading within a narrow channel. These stocks are to be bought as soon as they move above this band and sold when they fall below. In case a stock moves above this band, it usually gains momentum.
Spotting a Breakout Stock
The first step to selecting the right breakout stock is to calculate its support and resistance level. A support level is the lower bound for stock movements while a resistance level refers to the maximum price which it trades within over a considerable period.
In other words, the demand for a stock is at its lowest at its support level, which means most traders are willing to sell it. At the resistance level, most traders are willing to go long on the stock, which means that they would like to add them to their portfolios. The key to identifying breakout stocks is to zero in on those that are on the verge of a breakout or those that have just broken above the resistance level.
Identifying Whether It’s for Real
Stocks which have breached their resistance level should ideally be in high demand among traders. But the test of whether this is a genuine breakout is whether they go on to attain higher prices and the old barrier becomes a new support. This is why it is important to determine whether a long-term price trend is about to emerge.
Only a study of long-term trends can determine whether the existing trading channel has been breached effectively. This indicates the strength of the support or resistance levels. If you can identify the effective channel for a stock, picking it even at a not-so-reasonable price would give you significant returns.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportDHI Group, Inc. (DHX) : Free Stock Analysis ReportAvon Products, Inc. (AVP) : Free Stock Analysis ReportHallmark Financial Services, Inc. (HALL) : Free Stock Analysis ReportToray Industries Inc. (TRYIY) : Free Stock Analysis ReportANGLO AMER ADR (NGLOY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Sanofi/Regeneron's Asthma Candidate Meets Goal in Study
SanofiSNY and partner Regeneron Pharmaceuticals, Inc, REGN announced that a phase II study evaluating their investigational IL-33 antibody REGN3500 (SAR440340) in asthma met the primary endpoint.
Top-line data from the phase II proof-of-concept study on the candidate showed that REGN3500 (SAR440340) monotherapy significantly reduced loss of asthma control (primary endpoint) and improved lung function (secondary endpoint) compared to placebo.
The study had four treatment groups namely REGN3500 plus placebo, REGN3500 plus Dupixent, Dupixent plus placebo, and placebo. Dupixent is Sanofi/Regeneron’s successful new drug, which is marketed for atopic dermatitis as well as moderate-to-severe asthma.
Coming back to the phase II REGN3500 study, patients in the Dupixent monotherapy group did numerically better than REGN3500 across all endpoints. Interestingly, the REGN3500 plus Dupixent group failed to demonstrate increased benefit compared to Dupixent monotherapy. The percentage of adverse events was 61.6% in the REGN3500 patient group, 66.2% in the REGN3500 and Dupixent group, 56.8% in Dupixent and 64.9% in the placebo patient group.
Sanofi and Regeneron are developing REGN3500 in phase II studies for atopic dermatitis, asthma and chronic obstructive pulmonary disease (COPD).
Sanofi’s stock has risen 1.2% this year so far, underperforming the industry's rise of 4.2%.
Asthma was the second indication for which Dupixent was approved in the United States in October 2018. The asthma indication has been boosting sales of Dupixent since then. Dupixent was approved for the asthma indication in EU in May 2019.
Dupixent is also being evaluated in phase III studies for other inflammatory disease like eosinophilic esophagitis and COPD and in phase II study for food and environmental allergies. It is under regulatory review for chronic rhinosinusitis with nasal polyps for which the FDA’s decision is expected next week. We are optimistic about sales prospects of Dupixent, which could prove to be an important growth driver for the company.
Sanofi currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked large-cap pharma stocks are AbbVie, Inc. ABBV and Merck & Co., Inc. MRK, both with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Merck have gained 10.7% so far this year while estimates for 2019 and 2020 have risen 1.7% and 0.4%, respectively, over the past 60 days.
AbbVie’s earnings estimates have increased 1.5% for 2019 and 1.4% for 2020 over the past 60 days.
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What Percentage Of Maya Gold and Silver Inc. (TSE:MYA) Shares Do Insiders Own?
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Every investor in Maya Gold and Silver Inc. (TSE:MYA) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
With a market capitalization of CA$154m, Maya Gold and Silver is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about MYA.
Check out our latest analysis for Maya Gold and Silver
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Since institutions own under 5% of Maya Gold and Silver, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Hedge funds don't have many shares in Maya Gold and Silver. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Maya Gold and Silver Inc.. It has a market capitalization of just CA$154m, and insiders have CA$45m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public, who are mostly retail investors, collectively hold 69% of Maya Gold and Silver shares. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Why Trump's USCIS Pick Might Be His Most Controversial Yet
President Donald Trump has frequently filled vacancies at federal agencies with temporary appointments, but the administration’s latest “acting” designation, Ken Cuccinelli as director of U.S. Citizenship and Immigration Services, may be the most controversial yet.
Every immigration agency within the Department of Homeland Security is currently led by an acting director rather than a Senate-approved nominee. Cuccinelli, a former attorney general and state senator in Virginia, joins acting Immigration and Customs Enforcement director Mark Morgan, acting Customs and Border Patrol Commissioner John Sanders, and overseeing them all, acting DHS secretary Kevin McAleenan.
Cuccinelli is a contentious choice to lead USCIS, the federal agency charged with administering the nation’s immigration benefits, such as work and student visas, permanent residency and citizenship. He has never held a position in the federal government, and has a history of inflammatory rhetoric and stirring controversy. In his first week in the post, members of Congress, a union representing USCIS employees, and immigration advocates have all challenged his qualifications and the legality of the appointment.
During his time in Virginia public office, Cuccinelli fought against birthright citizenship, supported legislation mandating employees speak English in the workplace, and compared immigration enforcement to fighting a rat infestation. When his name was floated as a possible appointment, GOP Senators such as John Cornyn said he would have a tough time being confirmed in no small part thanks to his time in charge of the Senate Conservatives Fund, which challenged many incumbents including Majority Leader Mitch McConnell.
Cuccinelli finds his supporters among immigration hawks, and in April representatives of 19 conservative organizations including Tea Party Patriots Action, Conservative HQ, and former U.S. Senator Jim DeMint signed a letter to the president championing Cuccinelli as a “no-nonsense law enforcement officer and a major constitutional lawyer” who would be “ideally suited” to helm DHS.
Cuccinelli was named USCIS acting director on June 10, a little more than a week after Trump asked former director Francis Cissna to resign as part of a broader DHS reshuffle. Stephen Miller and other White House officials have bemoaned the pace of change at USCIS, and are advancing new policies that will make it more difficult to seek a range of immigration benefits, including asylum.
“What Cuccinelli brings to the table is an aggressive spokesperson who is a defender of Stephen Miller and Trump’s policies,” said Susan Collins, political director of the National Partnership for New Americans, a nationwide organization of immigrants and refugee rights organizations that promotes citizenship and improved integration.
“He’ll back their threats to Mexico and effort to force a crackdown on Central American refugees, and he’ll support the policy of asylum applicants waiting outside the U.S. for processing. Who knows how effective it will be, but they’ve been good at attracting lawsuits. If chaos and mayhem are the goal, and exploiting the crisis they’ve created, then they’ve no doubt chosen the right person.”
On June 18, chairmen of three House committeessigned a letter to McAleenanexpressing concerns that the appointment violates the Federal Vacancies Reform Act and requesting materials related to Cuccinelli’s selection.
Trump appointed Cuccinelli to a newly created role of “principal deputy director,” which may help circumvent the law. Since the position is technically a new one, the law on federal vacancies theoretically does not apply. University of Texas law professor Steve Vladeckwrote a blogbreaking down the “loophole” used by the administration, and concludes the bureaucratic maneuvering is probably legal.
“Cuccinelli’s appointment is probably not an outright violation of the FVRA,” he writes. “But in that respect, it only underscores how poorly drafted the FVRA is—and how easy it is for administrations not as readily subject to conventional political checks to take advantage of its open-endedness.”
Danielle Spooner, president of the National Citizenship and Immigration Services Council, representing some 13,000 USCIS employees nationwide, also questions the legality of appointing Cuccinelli and says the move “spells the end of legal immigration as we know it.”
USCIS officers are accustomed to shifting with the political winds of the White House and Congress, Spooner said, but the changes have never come so rapidly. That has contributed to a historic backlog in applications, the union says, while USCIS staff face greater and greater pressure to issue decisions. As some USCIS responsibilities have been moved to CBP, and the agency faces staffing shortages and the office closures, Spooner says her chief concern is national security as officers will not have the time to properly review cases.
“We don’t have enough employees, and the firing of people is a constant now,” Spooner said. “They’ve imposed completely unattainable performance goals. … I believe that through a series of policy changes they want to make it possible for only an elite group of people to qualify to be an immigrant. They’ve signed a new policy regarding public charges and they are expanding that with another form. They will continue to make it more and more difficult for people to be eligible.”
State Department official John Zadrozny, who previously worked as counsel to Sen. Ted Cruz (R.-Texas) and as legislative counsel at the Federation for American Immigration Reform, a restrictionist organization supporting a two-thirds reduction in immigration and enhanced enforcement, is also joining Cuccinelli at USCIS, asPolitico first reported.
“Cuccinelli is a bit of gadfly, he’s aggressive, and doesn’t mind offending people,” Collins said. “Then they move Sadrozy over from the State Department—who had a strong hand in restricting refugee resettlement—and it all comes right before launching the 2020 campaign in Orlando [June 18]. It makes you wonder if they are more interested in immigration as a campaign strategy rather than actually carrying out our nation’s legal system.”
While his credentials and the legitimacy of his appointment are being publicly debated, Cuccinelli has moved forward with his objectives for the agency.
In his first week he instituted a policy diverting the processing for legal permanent residency and citizenship applications from some of the busiest offices to other jurisdictions, ostensibly to expedite processing but also increasing the distance applicants will travel for meetings, andsent an emailto asylum officers questioning application approval rates and imploring them to do more to reduce the backlog..
“Cissna wasn’t going fast enough and Cuccinelli, if his appointment is legal, is tasked with going a lot faster,” Spooner said. “He came in right away and insulted asylum officers who, let me tell you, are working for American people and whose utmost goal is to protect national security … It’s unbelievable the director would blame the employees. If they want to eliminate the backlog, they should hire more judges.”
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EMERGING MARKETS-Latam FX mixed: Brazil's real up, Colombian peso awaits cenbank decision
By Susan Mathew June 21 (Reuters) - Mexico's peso slipped in subdued volume on Friday and Colombia's currency treaded water ahead of a decision by its central bank on interest rates amid concerns over U.S.-Iran tensions. The geopolitical worries cut short a strong rally spurred by some major central banks striking a dovish tone this week, putting most regional and broader emerging market assets on course for weekly gains. Returning from a holiday, Brazil's real firmed 0.4% and was on track for a weekly increase of about 1.7%. Late Wednesday, Brazil's central bank kept its key rate unchanged as expected and held back from signaling looser policy due to doubts about economic reforms. "We remain of the view that the BCB sits on hold for 2019, at least until pension reform is closer to completion," Sacha Tihanyi, deputy head of emerging markets strategy at TD Securities, said after the central bank decision. "But we push out our call for future tightening by 6 months to third-quarter of 2020. The bias of near-term risk to our view remains for additional easing in 2019." Mexico's peso slipped 0.2%, on course for a 0.6% weekly advance, while Colombia's currency was flat. Colombia's central bank is expected to hold the benchmark rate steady at its meeting later in the day in a bid to jumpstart the economy even as inflation expectations rise, a Reuters poll of 18 analysts showed. The bank may have to see stronger growth data materialize before acting and only happen toward the end of the year, Credit Suisse analyst Juan Lorenzo Maldonado wrote in a note on Thursday. Among stocks, those in Sao Paulo jumped more than 1%, with gains being broad-based. Equities in Chile, Mexico and Colombia were quiet. World stocks fell as investors worried about possible U.S. military strikes on Iran in retaliation for the downing of an unmanned U.S. surveillance drone. Key Latin American stock indexes and currencies at 1403 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1054.02 0.02 MSCI LatAm 2874.18 1.23 Brazil Bovespa 101782.35 1.47 Mexico IPC 43688.39 0.1 Chile IPSA 5049.73 -0.22 Argentina MerVal - - Colombia IGBC 12615.98 -0.09 Currencies Latest Daily % change Brazil real 3.8213 0.74 Mexico peso 19.0438 -0.26 Chile peso 683.1 0.04 Colombia peso 3188.15 0.00 Peru sol 3.31 0.00 Argentina peso - - (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Jeffrey Benkoe) |
Why Slack's IPO Investor Sentiment Might Be A Good Omen
Slack Technologies Inc(NYSE:WORK)hit the ground running on Thursdayfollowing its highly anticipated IPO. Tech companies have had mixed returns when it comes to big-name IPOs in 2019.
Here’s a look at how Slack’s performance and investor sentiment from data provided by StockTwits compares to other big names.
Slack Sentiment
Slack priced its IPO reference point at $26 per share and ended up opening at $38.50. The stock closed its first day of trading at $38.70. Not surprisingly, bullish sentiment related to Slack on StockTwits was as high as 80% at around noon on Thursday and stayed at that level through the close of trading.
Slack picked an excellent day to go public, as the S&P 500 also hit new all-time highs. However, bullish sentiment for Slack outpaced bullish sentiment for theSPDR S&P 500 ETF Trust(NYSE:SPY) at just 62%.
How It Compares
Other Silicon Valley unicorns debuting on the market this year have had mixed early returns, but none have had a higher level of bullish sentiment on their IPO day than Slack.
Lyft Inc(NASDAQ:LYFT) priced its IPO at $72 back on April 1. On its first day of trading, the stock gained 8.7%, closing at $78.29. However, bullish sentiment on StockTwits on the afternoon of the Lyft IPO was just 22%, foreshadowing what was to come. In the nearly three months that followed, Lyft shares are down 12.7% from the stock’s IPO price.
Uber Technologies Inc(NYSE:UBER) priced its IPO at $45 back on May 9. On its first day of trading, the stock fell 7.6% to $41.57. Bullish sentiment on Uber’s first day of trading was 57%. In roughly six weeks of trading, Uber is now priced at $43.86, still 2.6% below its IPO price.
Big Winners
Pinterest Inc(NYSE:PINS) has fared best of all among the group of tech unicorns. Pinterest priced its IPO at $19 per share on April 17. The stock jumped 28.4% on its first day of trading, closing at $24.40. Bullish sentiment on its first day of trading was 72%. After about two months, the stock is now priced at $27.54, up 44.9% from its IPO price.
The best-performing IPO of 2019 by a wide margin isn’t a tech stock.Beyond Meat Inc(NASDAQ:BYND) priced its IPO at $25 per share back on May 1. The stock soared 163% on its first day of trading and is now trading more than 500% from its IPO price. Investors were extremely bullish from the start, with Beyond Meat’s day-one bullish sentiment at 65%.
If day-one sentiment is any indication, Slack’s hit start could continue in the weeks ahead, much like Pinterest and Beyond Meat’s bullish momentum did.
Slack traded around $37.38 per share at time of publication.
Related Links:
Whitney Tilson: 'I Think We Are In An IPO Bubble'
Why A Beyond Meat Short Squeeze May Be 'Just Around The Corner'
Photo courtesy of Slack.
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UPDATE 4-U.S. House panel subpoenas Trump associate Sater after no-show
(Adds comments from Sater)
By David Morgan
WASHINGTON, June 21 (Reuters) - A U.S. House panel issued a subpoena on Friday to Russian-born real estate developer Felix Sater after he failed to appear for a closed-door interview with the committee, which is interested in his work on a proposed Trump Tower project in Moscow.
Sater did not show up for a scheduled session with the House of Representatives Intelligence Committee, blaming an unexpected illness that caused him to sleep through his wake-up alarm.
The decision to issue a subpoena came as numerous current and former Trump associates have refused to cooperate with congressional probes of Trump and his business interests.
Sater said the subpoena was unnecessary. He noted that he had testified voluntarily to multiple congressional committees while also cooperating with U.S. Special Counsel Robert Mueller's Russia probe.
"The one time I got sick and I couldn't make it last minute they are screaming subpoena," Sater told Reuters. "That's not cool. That's just political drama."
House Intelligence Chairman Adam Schiff appeared unmoved by Sater's health claim. "All I can tell you is that he agreed to appear this morning. He did not show up," he told reporters.
Representative Devin Nunes, the panel's top Republican, did not respond to questions from the press.
Committee spokesman Patrick Boland said in a statement: "The committee had scheduled a voluntary staff-level interview with Mr. Sater, but he did not show up this morning as agreed. As a result, the committee is issuing a subpoena to compel his testimony."
New York-based Sater, whose links to President Donald Trump were examined in Mueller's in-depth report on Russian meddling in the 2016 U.S. election, worked with Trump's former lawyer Michael Cohen on a plan to build a Trump-branded skyscraper in Moscow while Trump was a presidential candidate.
The House Intelligence Committee wants to talk to Sater about his work on the project, which came under renewed scrutiny after Cohen pleaded guilty in November to lying to Congress about when negotiations on the deal ended in order to minimize Trump's links to Russia.
In late summer 2015, according to the Mueller report, Sater contacted Cohen, who was then a senior executive in the Trump Organization, about the project.
Sater had previously worked with Trump's company on other matters and had "served as an informal agent of the Trump Organization in Moscow," said the report, released in redacted form in mid-April after an almost two-year probe.
Trump's children Ivanka Trump and Donald Trump Jr. were accompanied by Sater when they visited Moscow in the mid-2000s.
In November 2015, Sater emailed Cohen suggesting that the Moscow project could be used to increase Trump's chances of getting elected, according to the Mueller report.
"Buddy our boy can become President of the USA and we can engineer it. I will get all of Putins team to buy in on this, I will manage this process," said the email quoted in the report.
"Michael, Putin gets on stage with Donald for a ribbon cutting for Trump Moscow, and Donald owns the republican nomination. And possibly beats Hillary and our boy is in .. . . We will manage this process better than anyone. You and I will get Donald and Vladimir on a stage together very shortly. That the game changer," the email said.
Later that day, Sater followed up in an email that said: "We can own this election. Michael my next steps are very sensitive with Putins very very close people, we can pull this off. Michael lets go. 2 boys from Brooklyn getting a USA president elected. This is good really good."
Mueller's 448-page report found insufficient evidence to establish that the Trump campaign engaged in a criminal conspiracy with Moscow, despite numerous contacts between the campaign and Russia. It also described numerous subsequent attempts by Trump to impede Mueller's investigation, but stopped short of declaring that he committed a crime. (Reporting by David Morgan and Susan Heavey in Washington and by Nathan Layne in New York; editing by Kevin Drawbaugh, David Gregorio and Susan Thomas) |
Why Adobe Stock Is Still A King Among Cloud Companies
The reaction to earnings atAdobe(NASDAQ:ADBE) offered more proof that cloud applications are kings of this stock market.
Source: Shutterstock
Adobe, which moved its picture and video editors to the cloud early this decade, earned $632 million, $1.30 per share, on revenue of $2.744 billion during the three months ending in May. The earnings were 5 cents short of a year ago,well shortof analyst estimates, but revenue was 25% ahead. Guidance was consideredsoft.
But Adobe stock took off anyway, rising almost $17.50 per share over the next 24 hours, opening for trade June 20 at $294 per share. This added about $7 billion to the market cap, which stood at $142 billion. Adobe is up almost 29% in 2019 and over 300% over the last five years.
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Pretty good for what is, by Silicon Valley standards, a mature company.
Adobe was founded in 1982 around PostScript, a page description language, and during the rest of the 20thcentury it grew by acquiring other, related products for pictures and video. By the middle of the 2000s, however, it was languishing.
Then CEO Shantanu Narayen committed the company to the cloud.
Not only did Adobe find new profits by hosting its software online, but Adobe found new markets. In addition to its Creative Cloud, where you’ll find most of its older software, its star product is now its marketing software, called Adobe Experience Cloud, designed to help create, and measure, online and offline marketing efforts.
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The result has been what TV analyst Jim Cramer callsthe “golden age of creativity,”with websites crushing brick-and-mortar retailers. This doesn’t just help big retailers, but smaller ones likeRite Aid(NASDAQ:RAD), which is using Adobe topull data from multiple sourcesand help pharmacists get treatments right with improved patient compliance.
Along the way, Adobe has increasingly collided withSalesforce(NASDAQ:CRM) as both seek to become customers’Data Management Platformof choice for sales and marketing. So far there seems to beplenty of room for both.The losers are stores that don’t use these new tools and vendors ofolder toolslikeOracle(NASDAQ:ORCL), which are now being bypassed.
Having creative and marketing applications in the cloud not only improves Adobe’s own time to market, it lets all its customers stay on top of the latest trends in Web marketing and the fight against fraud.
When Adobe learns how to detect faces that have been edited online,all its customers can too.When its newApple(NASDAQ:AAPL) iPad software for artists, now calledFresco,is ready for launch, all its customers will get it at once.
Narayen’s key decision wasn’t just to commit to cloud, but to partner withMicrosoft(NASDAQ:MSFT)and its Azure cloud.The two companies are increasingly connected, withseamless integrationbetween Adobe’s cloud and Microsoft Office applications.
This will inevitably lead some to talk of a merger, but don’t expect one. Microsoft has learned, from its antitrust experience 20 years ago, not to consume the markets it creates. Close partnerships give it the dominance it craves without the risk of government interference.
The rapid rise in Adobe stock has some technicians putting upstop signson it, but options traders who bet on a move higher werebig winners.
As cloud applications become the norm, ADBE has a clear field ahead of it. The only thing keeping it off some analyst buy lists is its valuation, well over 10 times sales and 54 times earnings.
But in a hot market you don’t get a diamond by buying zirconium, and ADBE stock skeptics arefalling in line.
Dana Blankenhornis a financial and technology journalist. He is the author of a new environmental story,Bridget O’Flynn and the Bear, available now at the Amazon Kindle store. Write him atdanablankenhorn@gmail.comor follow him on Twitter at@danablankenhorn. As of this writing, he owned shares in MSFT and AAPL.
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The Zacks Analyst Blog Highlights: Netflix, Spotify, Microsoft, Cisco and Facebook
For Immediate Release
Chicago, IL – June 21, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix NFLX, Spotify SPOT, Microsoft MSFT, Cisco CSCO and Facebook FB.
Here are highlights from Thursday’s Analyst Blog:
Slack (WORK) Goes Public: 5 Things to Know
Around 117 million Slack shares will start trading today at around $26 a piece on NYSE under the “WORK” ticker symbol. The company has grown by monetizing its corporate messaging service that was initially developed for internal use.
It’s a Direct Listing
This means the going-public event is not tied to the need to raise cash (it has $800 million+ on its balance sheet) but rather the need to provide liquidity to existing shareholders (many institutional shareholders will be offloading some of their holdings) as well as income to employees who will be able to cash their RSUs.
Sometimes, this sort of coming out party indicates that all is not well at the company. This may not be the story for Slack, which has been trading quite a bit in the private market where it was last valued at $16.7 billion. However, the lack of a lock-in period allows early investors to cash out quickly, pulling down prices soon after the shares start trading, which can lead to a certain amount of volatility.
Morgan Stanley, Goldman Sachs and Allen & Co. are advising the company and Citadel Securities is serving as its market maker.
According to Slack’s S-1 filing, its biggest outside shareholders are Accel (24% share), Andreessen Horowitz (13.3%), Social Capital (10.2%) and SoftBank (7.3 %).
Financials Reflect Tech Company in Growth Phase
In its fiscal year ending January 2019, Slack generated $400.6 million in revenue, which was up over 80% from 2018. This allowed it to lower its losses from $181.0 million in 2018 to $140.7 million last year. The cash burn rate of $41.1 million in the year suggests that balance sheet cash may be enough to take the company to profitability, especially given the strong revenue generating capability.
While less than a 100,000 companies currently subscribe to the service, the number has grown 49% in 2019. There are also another 500,000 organizations with three or more employees trialing a free subscription plan. Not all subscribers are small however. More than 65 are Fortune 100 companies while 575 are big companies paying more than $100,000 a year (this group accounted for 40% of revenue and grew 93% in 2019).
Bloomberg Intelligence estimates that Slack could generate up to 65% of its revenue in 2020 from free-to-premium conversion. Since the company expects to generate $590 million in revenue, conversions would come to $383.5 million in that case.
The User Ecosystem Appears Healthy
The company has more than 10 million daily active users. In the week ended January 31, 2019, these users spent 50 million hours sending more than a billion messages. While the user count pales in comparison to service providers like Netflix or Spotify, which are pretty well known on Wall Street, the number could grow quickly given the large number of organizations currently on trial.
Moreover, Slack’s subscriptions aren’t exactly comparable: the growth in large organizations is particularly encouraging because wins from this group will bring in a substantially higher number of users, and therefore, revenue.
There Are Significant Competitors
While Slack’s workplace communications business is growing rapidly, there are competing services from Microsoft that is part of their enterprise suite. Cisco, which provides unified communications services and Facebook, which has been exploring the business software market are other contenders in the space.
Follow-on Offering Can’t Be Ruled Out
Growth companies typically need a lot of cash as they have to invest in the business to keep the growth rates up. If the market is conducive; in this case, if the shares are stable and show healthy appreciation, raising some more cash won’t hurt.
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Media Contact
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800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visithttps://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCisco Systems, Inc. (CSCO) : Free Stock Analysis ReportNetflix, Inc. (NFLX) : Free Stock Analysis ReportFacebook, Inc. (FB) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportSpotify Technology SA (SPOT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Are Insiders Selling Murphy USA Inc. (NYSE:MUSA) Stock?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inMurphy USA Inc.(NYSE:MUSA).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Murphy USA
In the last twelve months, the biggest single sale by an insider was when the Director, Claiborne Deming, sold US$1.1m worth of shares at a price of US$84.08 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$86.08. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 1.9% of Claiborne Deming's holding. The only individual insider seller over the last year was Claiborne Deming.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Murphy USA insiders own about US$168m worth of shares (which is 6.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
An insider hasn't bought Murphy USA stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Zacks Analyst Blog Highlights: Middlesex Water, Atlantic Power, NexPoint Residential Trust, Illumina and BioDelivery Sciences International
For Immediate Release
Chicago, IL – June 21, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Middlesex Water Co. MSEX, Atlantic Power Corp. AT, NexPoint Residential Trust Inc. NXRT, Illumina Inc. ILMN and BioDelivery Sciences International Inc. BDSI.
Here are highlights from Thursday’s Analyst Blog:
Top Rate-Sensitive Stocks to Buy Amid the Fed’s Rate Cut Hints
In its FOMC minutes on Jun 19, the Fed kept interest rate unchanged while giving a clear indication that it will not hesitate to take appropriate action, when required, to sustain economic expansion. The central bank is concerned about global economic slowdown and lingering tariff war between the United States and China.
Tepid manufacturing data, lower business spending and muted inflation may compel the Fed to cut interest rates this year. Moreover, non-farm payroll in May was extremely low, signaling a possible halt in labor market growth, which was one of the key pillars of U.S. economic expansion.
Fed Signals Near-Term Rate Cut
On Jun 14, in his speech following the FOMC meeting, Fed Chair Jerome Powell said that the benchmark lending rate was kept intact at 2.25-2.5%. Fed’s fund flow rate projection chart is not showing any possibility of a reduction in rate before early 2020.
However, the noticeable fact is that out of 17 voting members of the Fed, a strong bunch of eight is expecting a rate cut this year, while another eight members are in favor of maintaining status quo. Only one member is expecting a rate hike instead of a rate cut.
Market participants feel the numbers are strong indication of one or more rate cut this year. In fact, several market watchers are expecting a quarter to half a percentage point cut in benchmark rate throughout the rest of 2019. Notably, the Fed has removed the term “patient’ from its minutes and added that “the FOMC will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion”.
The Fed has said that adoption of more accommodative policy is gaining ground as some economic developments raised concerns about U.S. and global growth. Meanwhile, traders are wholeheartedly expecting at least one rate cut in July. Per CME FedWatch, Fed funds futures market tool is pointing a 67.7% probability of a 25 basis-point reduction in fund rate while 32.3% probability of a reduction of 50 basis points.
Tepid Global Economic Data
Lingering trade conflict between the United States and China has already dented investors’ confidence internationally. Non-farm job addition in May came in at just 75,000. Moreover, total job addition in April and March was reduced by 75,000.
U.S. manufacturing is suffering due to lack of global demand. The ISM Manufacturing Index for May came in at 52.1, the lowest level since October 2016. Factory orders for U.S.-made durable goods declined 0.8% in April. Additionally, U.S. core PCE inflation index – Fed’s favorite inflation gauge – rose 1.6% in April, well below the central bank’s target rate of 2%.
China’s official manufacturing PMI for May slipped to 49.4, from April’s reading of 50.1. PMI readings below 50 signal contraction in the Chinese manufacturing sector. The National Bureau of Statistics of China reported that value-added industrial output rose 5.0% in May compared with 5.4% in April. This was the lowest growth rate in 17 years.
Yields on 10-year Treasury bond in Germany, Switzerland and Japan are currently in negative territory. Moreover, yields on 10-year Treasury bonds declined to less than 1% in France, Spain and the U.K.
Our Top Picks
Under these circumstances, rate-sensitive investments like utilities, REITs and health care, with strong growth potential, will be prudent. We narrowed down our search to five such stocks, each carrying a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Middlesex Water Co.owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. The company has expected earnings growth of 10.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 5.9% over the last 60 days.
Atlantic Power Corp.owns and operates a fleet of power generation assets in the United States and Canada. The company has expected earnings growth of 50% for the current year. The Zacks Consensus Estimate for the current year has improved by 118.2% over the last 60 days.
NexPoint Residential Trust Inc.invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company has expected earnings growth of 10.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.5% over the last 60 days.
Illumina Inc.provides sequencing and array-based solutions for genetic analysis. The company operates in two segments, Core Illumina and Consolidated VIEs. The company has expected earnings growth of 16.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 2.3% over the last 60 days.
BioDelivery Sciences International Inc.is a specialty pharmaceutical company, which engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company has expected earnings growth of 80.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 33.3% over the last 60 days.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAtlantic Power Corporation (AT) : Free Stock Analysis ReportMiddlesex Water Company (MSEX) : Free Stock Analysis ReportBioDelivery Sciences International, Inc. (BDSI) : Free Stock Analysis ReportIllumina, Inc. (ILMN) : Free Stock Analysis ReportNexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Victoria Beckham pranks David with Man City shirt featuring his hated nickname
Manchester United's David Beckham celebrates after the 1999 Treble Reunion Match - Manchester United '99 Legends v Bayern Munich Legends Victoria Beckham gave the world a peek into the lives of her famous family members as she made her husband David pose with a football shirt that he clearly hated. The Manchester City shirt belongs to the rivals of the team Beckham found fame playing for, Manchester United. The shirt also features the nickname he hates, ‘Dave’. David's deadpan face makes the photo - which appeared on Victoria’s Instagram Story. (Instagram) Victoria shared the snap from a Spanish family holiday, in Seville. Her tags suggested some context for the photo. She tagged her son Romeo, 16, and presenter James Corden in the post. Read more: Beckham gets six-month driving ban Victoria captioned the snap: “Nice shirt Dave from Man City!” following by “kisses” and liberal use of the crying-laughing emoji. It appears to be a reference to a recent prank James Corden played on the former footballer for his chat show The Late Late Show , in which Beckham unveiled a hugely unflattering - and fake - statue of himself. Becks could hardly disguise his discomfort when one of the guests at the unveiling ceremony called him “Dave” - a name he can’t stand - while referring to his time playing for Manchester City. He famously played for City’s fierce rivals Manchester United. The former Spice Girl appears to be taking the pictures over breakfast. In another snap, the couple’s younger children can be seen hugging David, who has a glass of orange juice and cup of tea in front of him. View this post on Instagram A post shared by Victoria Beckham (@victoriabeckham) on Jun 16, 2019 at 3:28am PDT This picture has a much more sincere caption, with Victoria writing: “Truly the best daddy in the world x we love u so much x kisses @davidbeckham x”. The football star has been pictured kissing his daughter Harper on lips again during their Spanish holiday, despite the sweet act being branded "creepy" by Piers Morgan. Morgan said on Good Morning Britain : "Why would a father kiss his daughter on the lips? Don't get it. Creepy. Weird. Creepy. Story continues "No one does that. You post that to the world, but why?" View this post on Instagram A post shared by David Beckham (@davidbeckham) on Jun 16, 2019 at 7:36am PDT Beckham also posted a picture of him and Harper posing with a souvenir. Beckham beams with joy as daughter Harper holds up a fully-extended ‘Sevilla’ fan and he helps her hold it up. His other arm holds his youngest child close for the snap. |
Can Matrix Service Company (NASDAQ:MTRX) Improve Its Returns?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Matrix Service Company (NASDAQ:MTRX), by way of a worked example.
Matrix Service has a ROE of 0.1%, based on the last twelve months. That means that for every $1 worth of shareholders' equity, it generated $0.0014 in profit.
Check out our latest analysis for Matrix Service
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Matrix Service:
0.1% = US$487k ÷ US$336m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the yearly profit. That means that the higher the ROE, the more profitable the company is. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Matrix Service has a lower ROE than the average (9.2%) in the Energy Services industry.
Unfortunately, that's sub-optimal. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Nonetheless, it could be useful todouble-check if insiders have sold shares recently.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Although Matrix Service does use a little debt, its debt to equity ratio of just 0.0065 is very low. Its ROE is rather low, and it does use some debt, albeit not much. That's not great to see. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Soybean Down Friday but Positive on Week; Russia’s Wheat Export Estimates Down
Soybean, corn, and wheat are trading positive on Friday as investors digested weather reports and concerns about a supply crisis in the months to come. Also, Russian analysts are now cutting its 2019 Russian exports estimates.
While in the United States rains don’t stop, it looks like the storms are not arriving in Russia. IKAR and SovEcon, Russian agriculture consultants, has downgraded forecast for Russia’s wheat exports for 2019 and 2020 amid dry weather.
“The market continues to watch the Black Sea weather closely where hot and dry weather continues to threaten the new crop,” SovEcon said.
Ikar cut its forecast of wheat exports by 5000K tonnes to 36.5 million. Grains exports were also reduced by 1.4 million tonnes to 46 million.
SovEcon cut Russian wheat exports estimates by 6000K tonnes to 37.6 million tonnes in 2019 and 2020. Expectations for grains exports were reduced to 5000K tonnes to 48.9 million tonnes.
Soybeanprices are trading down on Friday as the bushel wasn’t able to extend gains above the 9.100 area. Now, the unit is moving at 9.055, 0.50% negative on the day.
On the week, soybean is closing its second week with gains as the unit extended gains above the 8.800 area and it is closing above the 9.000 key level. A mix of planting delays and geopolitical factors are pushing the grain back to 2019 highs and December-March range.
Corn is trading positive for the second day as investors are digesting more wet weather but also cold temperatures in the corn belt of the United States. The unit is trading 0.40% positive on Friday, adding gains after the 2.20% performed Thursday.
A volatile week for corn as the unit has moved as high as 4.590, but also as low as 4.320 before closing the week with virtually no gains and no losses. Corn is now 0.15% positive on the week, but the unit is fighting to decide what side it is going to take before the closing bell.
Wheatprices are extending its recovery from 5.100 as it is trading positive for the second day in a row. Wheat is now trading at 5.250, consolidating gains above the 5.200 area.
However, in the weekly chart, the story is different as wheat is ready to close the week with losses after the sharply gain performed in the previous period. In the last six weeks, this would be the second negative period.
Coffeeis ready to close its first positive week after two negative periods as the unit found support at 96.25 on Wednesday and it logged two positive days until today’s 3.4% daily gain to recover the 100.00 level and test the 200-day moving average at 102.20.
Currently, Coffee futures are trading at 101.75 with technical studies suggesting more recoveries next week. However, the reading should be taken with a grain of salt as today is Friday, and some profit taking could be undergoing.
Sugaris trading negative for the fifth day in a row amid reports that the sugar production rose over 3% year to year in May and June.
In the last five days, sugar has fallen 2.5% from 0.1270 to trade at current levels of 0.1235. It would be its first negative week in the previous five.
Thisarticlewas originally posted on FX Empire
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Companies to Watch: Micron under pressure, Funko sees a pop, concerns for ExxonMobil
Here are the companies Yahoo Finance is watching today.
There’s new pressure today onMicron(MU), with two more analysts cutting their price targets. JPMorgan now sees the stock reaching $50 a share, while analysts at Baird have cut their target to $28. Both cite a downturn in demand for memory chips. Micron reports earnings next week.
There’s a better outlook atFunko(FNKO). The toymaker has just gotten two price target increases from SunTrust and Stifel Nicolaus. That comes on the heels of the stock popping 9% yesterday. Execs told investors at a conference earlier this week that they're optimistic, and enjoying "strong growth," thanks in part to keeping development costs low.
ExxonMobil(XOM) is reportedly running into trouble helping get oil out of Iraq. Reuters says a $53 billion project there has hit snags over contracts and security. The Iraqi government is apparently objecting to some terms, including just how much oil Exxon could have access to — the company is not commenting.
UnitedHealth(UNH) is buying up payments firm Equian for about $3.2 billion. The healthcare company is likely to merge Equian with its health services arm Optum, according to the Wall Street Journal. Equian offers payment-processing for health-care companies and insurers and claims to reduce overpayment mistakes.
McDonald's(MCD) is trying out some new technology. The fast food giant is testing robotic deep-fryers and voice-activated drive-thrus as it looks to streamline its operations and speed up service. This comes as the Golden Arches faces increasing pressure from smaller burger chains and declining fast food visits. |
US Pulled Back On Iran Attack '10 Minutes' Before Strike, Trump Says In Tweet
President Donald Trump said Friday he called off a planned military strike against Iran because it could have killed more people than would have been appropriate as a response to Iran’s downing of an unmanned American drone.
What Happened
Trump said on Twitter that he ordered the retaliatory attack, but pulled back 10 minutes before because it wouldn’t have been proportional.
Why It's Important
The New York Timescited senior officials who said Trump approved attacks on multiple Iranian radar and missile batteries, showing a willingness to engage Iran militarily.
Hawks in the administration have been pushing for a strong reaction to Iran for its actions on Thursday, when it shot down the drone.
Iran and the U.S. have conflicting accounts of where the drone was: the U.S. said it was in international waters over the Straits of Hormuz, while Iran said it was in Iranian airspace.
In a separate Times story, a commander of Iran's Aerospace Force was quoted as saying the country could have also shot down an American military plane with 35 people on board.
“With the U.S. drone in the region there was also an American P-8 plane with 35 people on board,” said Gen. Amir Ali Hajizade, according to the Tasnim news agency.
“This plane also entered our airspace and we could have shot it down, but we did not.”
What’s Next
Congressional Democrats have blamed Trump for increased tensions with Iran, as his administration pulled out of the Iran nuclear agreement reached by the administration of former President Barack Obama.
Rep. Tulsi Gabbard of Hawaii tweeted that war with Iran is "highly likely unless Trump swallows his pride and returns to the Iran nuclear agreement.”
Trump said on Twitter that more sanctions will be imposed on Iran, and implied that military action may still occur.
Brent crude was trading higher by 1.33% at $65.31 a barrel at the time of publication Friday.
The United States Oil Fund LP(NYSE:USO) was up 1.05% at $11.98.
The S&P 500 was down 0.13%, while the Dow Jones Industrial Average was up 0.11%.
Related Links
Iran Shoots Down US Drone In What Trump Calls 'Very Big Mistake'; Pelosi Says 'No Appetite' For War
Oil Spikes As US Threatens To 'Zero' Out Iranian Oil Exports: What You Need to Know
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
The Zacks Analyst Blog Highlights: Invitae, Illumina, Pacific Biosciences and Guardant Health
For Immediate Release
Chicago, IL – June 21, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Invitae NVTA, Illumina ILMN, Pacific Biosciences PACB and Guardant Health GH.
Here are highlights from Thursday’s Analyst Blog:
Genetic Testing = Giant Growth Market
I recently wrote a special report for Zacks Ultimate members where I picked my favorite stock to double in the next year. Here's an excerpt...
Invitaeis the $1.7 billion game-changing genetic diagnostics company that is like a “LittleIllumina” in terms of its proprietary genotyping technology and “network effects” in patient and care-provider medical information.
Both companies are leaders at their respective levels/markets in what is called Next Generation Sequencing (NGS). From the FDA guidance document on NGS in April 2018...
In the past decade, the cost of sequencing a whole genome has dropped 1000-fold, and the number of genetic tests has risen to more than 55,000 for over 11,000 conditions. Rapid adoption of NGS technology in medicine has led to the identification and curation of novel genetic variants that promise to improve diagnostic accuracy and reduce unnecessary healthcare costs.
Without question, we have witnessed the greatest impact of genomics in oncology and cancer therapy. The diagnosis and management of several types of cancer – Hodgkin’s lymphoma, breast cancer, and chronic myeloid leukemia - have made remarkable advances thanks to DNA sequencing technology. NGS has also benefited other fields like cardiovascular medicine.
Based on Invitae’s quality growth trajectory into a very large TAM (total addressable market), I believe that NVTA shares will double in the next 12-18 months to the $35-40 area. Investors should continue accumulating shares in the upper teens. If you already have a partial position, consider waiting to see if shares will fill the Feb 20 gap down to $16.50.
But I’m not even as optimistic as CEO Sean George who said in an interview in November that his goal is “to build a five to ten billion company over the next 3-5 years. I’d say that’s exactly where we are going. The faster we can do that the better. It’s very clear to us. That’s the head set.”
(end of excerpt from my "Invitae to Double" report)
In the video that accompanies this article, I introduce both companies and several of their peers in genomic diagnostics includingPacific BiosciencesandGuardant Health. More on these companies in a moment.
What I didn't emphasize enough in the video, though, was how big the potential market is for genetic testing.
Not only does Illumina design a nearly $1 million machine that is used for most genome sequencing and sold to biopharma companies, universities, and other genetic research labs, they also provide the science behind most of the consumer testing kits.
Their technology is largely responsible for the massive drop in the cost of sequencing and Invitae is one of their big customers for testing. Together, the two companies are staring into a massive market opportunity.
Consider that if only 500 million people across North America, Europe, and Asia seek some form of medical-grade testing in the next 5 years at an average cost of $250 -- not merely the genealogy versions that cost only $99 -- that could equal $125 billion in revenue for these companies.
Currently, Illumina is on track to cross $4 billion in revenues in the next year, while Invitae is just on pace to break $300 million in trailing 12-month sales for the first time by next June.
Even if you cut my estimate of the TAM in half to ~$60 billion, that's still a huge market opportunity for both companies. And when you listen to these companies, especially Invitae CEO Sean George, you hear them describe a birth-to-death lifecycle of potential genomic testing for health-conscious consumers.
And Invitae is developing many types and levels of medical inquiry for genomic insights, some that cost north of $500 for precision testing of specific genetic conditions.
In short, the average person could be a customer for several tests in his or her lifetime, whether self-initiated or ordered by their doctor.
I became more interested in Invitae this April after the company just got some great news from giant health insurer United Healthcare who chose Invitae as just one of seven labs covered in a new group of diagnostics providers called the Preferred Laboratory Network (PLN).
This means insurance providers are becoming medical advocates of genetic testing because it helps doctors with screening, diagnosis and early detection of health issues for their patients, which saves money for everyone in the healthcare value chain.
I expect there also to be a rise in government-sponsored campaigns to raise awareness of the value of genetic testing, encouraging citizens to be more proactive with increasingly available and affordable screening options.
Illumina's Planned Buyout of Pacific Biosciences Runs Into Opposition
On June 18, Reuters reported "Britain’s competition watchdog said on Tuesday the planned $1.2 billion merger between gene sequencing company Illumina Inc and smaller rival Pacific Biosciences of California Inc may be a threat to competition in the country."
Pacific Biosciences specializes in a type of sequencing called "long-read" which offers a comprehensive view of genomes, transcriptomes, and epigenomes. Its single molecule, real-time -- or SMRT technology -- is an integrated platform for genetic analysis that uses the natural processing power of enzymes, combined with specially designed reagents and detection systems, to record individual biochemical events as they occur.
On November 2, ILMN announced it would acquire PACB for $1.2 billion to fill a gap in its technology offerings. The sequencing market centers around the short-read technology from ILMN, which is both fast and economical. But the long-read technology caters to more applications and more accuracy, albeit at a slower speed and higher price tag.
Some analysts like the team at Leerink believe that the PACB technology costs 12-15 times more vs ILMN, citing $1,000 for a full genome on ILMN vs $12,000 on PACB. In explaining its rationale for the buyout, ILMN management said it sees the long-read market opportunity to expand from $600 million in 2017 to $2.5 billion by 2022.
While the UK snag raised uncertainty for both companies, it certainly creates opportunity for others. In the video, I discuss the other potential M&A that could heat up in this space, including potential suitors for NVTA.
Supporting Wider Availability of Screening in Early Pregnancy
As the utility of genetic information expands, particularly in pregnancy and reproductive health, demand for high-quality and highly affordable testing grows with it. NIPS is conducted in early pregnancy to detect chromosomal abnormalities and assess the health of the fetus via a simple blood test.
Invitae introduced its NIPS services earlier this year and recently announced reduced patient-pay pricing of $99 to improve access to testing for the six million pregnancies in the United States each year. Historically, these tests have been expensive, and therefore offered only to women in certain elevated risk groups. By investing in technologies, including those developed by Singular Bio, Invitae is driving down the cost of testing to increase the number of women who can benefit from the use of NIPS testing in early pregnancy.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInvitae Corporation (NVTA) : Free Stock Analysis ReportPacific Biosciences of California, Inc. (PACB) : Free Stock Analysis ReportIllumina, Inc. (ILMN) : Free Stock Analysis ReportGuardant Health, Inc. (GH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
New Strong Sell Stocks for June 21st
Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
Baozun Inc.BZUN is a provider of brand e-commerce service to brand partners in China. The Zacks Consensus Estimate for its current year earnings has been revised 4.1% downward over the last 30 days.
CommScope Holding Company, Inc.COMM is a provider of infrastructure solutions for communications networks. The Zacks Consensus Estimate for its current year earnings has been revised 0.4% downward over the last 30 days.
DXC Technology CompanyDXC is a provider of information technology services and solutions. The Zacks Consensus Estimate for its current year earnings has been revised 11.4% downward over the last 30 days.
Grupo Supervielle S.A.SUPV is a provider of banking products and services. The Zacks Consensus Estimate for its current year earnings has been revised 6.6% downward over the last 30 days.
Jerash Holdings (US), Inc.JRSH is a manufacturer and exporter of customized and ready-made sports and outerwear. The Zacks Consensus Estimate for its current year earnings has been revised 8.2% downward over the last 30 days.
View the entire Zacks Rank #5 List.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBaozun Inc. (BZUN) : Free Stock Analysis ReportCommScope Holding Company, Inc. (COMM) : Free Stock Analysis ReportGrupo Supervielle S.A. (SUPV) : Free Stock Analysis ReportDXC Technology Company. (DXC) : Free Stock Analysis ReportJerash Holdings (US), Inc. (JRSH) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
The Zacks Analyst Blog Highlights: Adobe, Charter Communications, HCA Healthcare, Micron and Shopify
For Immediate Release
Chicago, IL – June 21, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Adobe ADBE, Charter Communications CHTR, HCA Healthcare HCA, Micron MU and Shopify SHOP.
Here are highlights from Thursday’s Analyst Blog:
Top Research Reports for Adobe, Charter Communications and HCA Healthcare
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Adobe, Charter Communications and HCA Healthcare. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can seeall oftoday’s research reports here >>>
Adobe’s shares have gained +17% over the past year, underperforming the Zacks Software industry which has increased +27.4% over the same period. Adobe reported strong fiscal second-quarter results. The Zacks analyst thinks increasing demand for its creative products are driving top-line growth.
Also, the company’s Adobe Document Cloud and Adobe Experience Cloud products, along with growing subscription for cloud application have aided results. It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing.
Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud are major positives. However, lower end-market demand and exposure to Europe remain overhangs. Additionally, high acquisition expenses do not bode well for its margin expansion.
Shares ofCharter Communicationshave outperformed the Zacks Cable TV industry year to date (+39.5% vs. +28.5%).The Zacks analyst thinks the company’s residential and commercial Internet and voice customer growth continues to drive its top line. Increase in Internet speed at no extra cost is aiding subscriber growth.
Additionally, Charter is looking to attract video customers by providing a new OTT video service. Notably, the company launched Spectrum TV Essentials in Charter’s footprint for Spectrum Internet users who do not avail Spectrum video services. However, commercial revenues continue to suffer due to migration of customers to Spectrum pricing and packaging from Legacy TWC and Legacy Bright House.
Moreover, Charter continues to lose video subscribers primarily due to cord-cutting and intense competition from streaming service providers such as Netflix, HBO and Amazon.
HCA Healthcare’s shares have outperformed the Zacks Hospital industry in the past year, gaining +20.9% vs. +6.3%. Moreover, it has witnessed its 2019 and 2020 earnings estimates move north over the past 30 days.
The Zacks analyst thinks its top line has been growing over the last several quarters on the back of higher admissions, same facility emergency room growth and surgical growth, etc. Multiple acquisitions have helped the company gain a strong foothold in the industry, fueling its inorganic growth.
A strong balance sheet and free cash flow are other positives for the company. A bullish 2019 guidance should instill investor’s confidence in the stock. However, high operating expenses persistently weigh on its margins.
The company is expected to witness a rise in costs due to its constant growth-related investments. High leverage is another concern for the company.
Other noteworthy reports we are featuring today include Micron and Shopify.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportShopify Inc. (SHOP) : Free Stock Analysis ReportCharter Communications, Inc. (CHTR) : Free Stock Analysis ReportAdobe Systems Incorporated (ADBE) : Free Stock Analysis ReportHCA Healthcare, Inc. (HCA) : Free Stock Analysis ReportMicron Technology, Inc. (MU) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Four U.S. states join effort to stop T-Mobile-Sprint deal
NEW YORK, June 21 (Reuters) - Four more U.S. states have signed on to an unusual effort by state attorneys general to stop T-Mobile US Inc's acquisition of Sprint Corp , a New York official said at a court hearing on Friday.
Beau Buffier, an attorney in the New York attorney general's office, said Hawaii, Massachusetts, Minnesota and Nevada will be included in an amended complaint being filed Friday.
Lawyers for the states and wireless companies also proposed Oct. 7 for the start of the trial, which could last two to three weeks.
(Reporting by Jonathan Stempel; Editing by Jeffrey Benkoe) |
Parents upset after students wear MAGA hats on field trip
Some New Jersey parents have expressed upset after a handful of eighth grade students were pictured wearing “ Make America Great Again ” hats on a school field trip. Students from Avon Elementary School in Monmouth County were on an end-of-the-year trip to Washington, D.C., during which several students purchased the red hats as souvenirs. Avon School District Superintendent Christopher Albrizio tells Yahoo Lifestyle that there were no disruptions on the trip as a result of the hats. However, once parents saw photos of the students on an internal site, some expressed concern. The photos with the hats, which feature a slogan associated with fans of President Donald Trump , were addressed in multiple emails sent to the school board from parents; the issue was also brought up in a June 12 Board of Education meeting. “During the meeting, the Board recognized that students have the right to express themselves and that they do not believe students wearing the hats nor the post violated Board Policy,” Albrizio explained in a statement. The superintendent also shares that the district has been in touch with the board’s attorney for further guidance. Read more from Yahoo Lifestyle: Navy members may have broken military dress code with 'Make Airman Great Again' patches High school student claims his freedom of speech was violated after MAGA hat censored in yearbook Students in MAGA gear accused of harassing 'liberal' students and chanting Trump slogans Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
Nevro Corp. (NYSE:NVRO) Insiders Increased Their Holdings
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inNevro Corp.(NYSE:NVRO).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Nevro
Director Elizabeth Weatherman made the biggest insider purchase in the last 12 months. That single transaction was for US$501k worth of shares at a price of US$61.45 each. That implies that an insider found the current price of US$63.99 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders bought 9858 shares for a total of US$601k. Nevro may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Nevro is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Over the last three months, we've seen significant insider buying at Nevro. Not only was there no selling that we can see, but they collectively bought US$601k worth of shares. This is a positive in our book as it implies some confidence.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.4% of Nevro shares, worth about US$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Nevro insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Nevro.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Thousands call for climate action, target German coal mine
AACHEN, Germany (AP) Thousands of students from across Europe protested Friday near a coal mine in western Germany, urging governments to take bolder action against climate change. Organizers said up to 20,000 protesters from 16 countries took part in the rally in Aachen, near Germany's border with Belgium and the Netherlands. Demonstrators carried banners with slogans like "Your greed costs us our future" and "Stop coal." It comes a day after European Union leaders failed to agree upon a plan to make the bloc's economy carbon neutral by 2050. Several large European countries including Britain, France and Germany have backed the target, but coal-reliant countries in the east, such as Poland, blocked consensus on the proposal, which entails an almost complete phase-out of fossil fuel use. Friday's protest took place near the site of one of Germany's biggest lignite coal mines. The mine has become a focus of environmental protests in recent years because its operator, the utility company RWE, threatened to chop down a nearby forest. Further protests are expected at the site over the weekend. German police have mobilized hundreds of officers and a water cannon to prevent the vast, open-cast mine and adjacent power plants from being blocked by protesters. The German government earlier this year approved a national plan to end the use of coal for electricity by 2038 but make up much of the shortfall with imported natural gas. Activists say German can and should do more. "Germany, among other industrial nations, is one of the countries mainly responsible for climate change," said protester Paula Maas, 21. "We do not feel the effects yet in comparison to the countries in the global south, and it is simply essential to take to the streets against it and to protest." Following months of protests by students and a sharp rise in the polls for Germany's Green party, Chancellor Angela Merkel recently threw her weight behind the idea of making the entire German economy climate neutral by 2050 meaning no more man-made greenhouse gases would be added to the atmosphere. Story continues Scientists say ending fossil fuel use by mid-century is a must if countries want to achieve the 2015 Paris climate accord's most ambitious goal of keeping global temperatures from rising more than 1.5 degrees Celsius (2.7 degrees Fahrenheit) compared to pre-industrial times. Speaking Friday after the end of the EU leaders' meeting in Brussels, Merkel noted that a "big majority" of the bloc's 28 nations now back that goal. "A few others need to spend a bit more time working out what this means for their internal measures," she said, without calling out the countries by name. But activists called the EU's failure to agree on a unified position ahead of a U.N. climate summit in September "shameful." "The EU is in danger of being associated with climate pariah states like the U.S. and Brazil," said Mohamed Adow, a climate policy expert at Christian Aid. "They must stop hiding behind a handful of blockers if they want to claim any leadership on the global stage." ___ Jordans reported from Berlin. Kirsten Grieshaber contributed to this report. |
Boris Johnson may have been Londons cheerleader in 2012 but he did not deliver the Olympics. Far from it
Boris Johnson delivered the Olympics. It is a line that is not so much creeping as shoehorning its way into the public debate over Britains next prime minister. It is one of Team Boriss approved lines, when it sends ambitious Tory MPs into the TV and radio studios because Johnson is too conniving to appear himself. On Thursday night, Kwasi Kwarteng was the latest to come out with it, this time on BBCs Question Time . Anyone who knows anything about the delivery of the Olympics, and there are hundreds such people around, if not thousands, has the same reaction to this apparent truth. It is to laugh. Boris Johnson himself is among those people. I would be incredibly surprised if his own private reaction to the idea he delivered the Olympics would be to anything but chuckle to himself. I was The Independent s Olympics news correspondent in the year running up to the 2012 games. I did little else but cover the delivery of the Olympics. The Olympics were, for all intents and purposes, a government department, albeit one with a slightly complicated structure. It was a department in which Boris Johnson, the mayor of London, had no executive role whatsoever. The question of Who delivered the Olympics? is also complicated. But none of its possible answers are Boris Johnson. If the question is, Who was responsible for bringing the Olympics to London?, the answer to that is threefold. One, the late Tessa Jowell persuaded Tony Blair and the Labour government that the games were worth bidding for. Two, Seb Coe, for leading Londons ingenious bid. Three, Tony Blair himself, who persuaded the Olympic blazerati, one by one, in a hotel room in Singapore to back London. If the question is, Who was responsible literally for the delivery of it? the fantastic stadiums, the transport infrastructure upgrades, all built more than on time and to a satisfactory budget that would have been the Olympic Delivery Authority. The clue is in the name. The ODA was a magnificently run organisation, under its chairman, the softly spoken Sir John Armitt. From 2007 to 2012, it put not so much as a foot wrong. Story continues It was set up, somewhat ironically, as a subsidiary body of the Department for Culture, Media and Sport, whose secretary of state, at least from 2010 onwards, was Jeremy Hunt. If either of the two Tory leadership candidates can claim with an even remotely straight face to have delivered the Olympics, it would not be Boris Johnson. Then there was the London Organising Committee of the Olympic Games, run by Lord Coe. It raised its £2bn budget with ease. It faced some anger over ticketing, but chiefly that was because it organised the most popular Olympic and Paralympic Games in history. Again, Boris Johnson had no role. Throughout the London 2012 adventure, Boris Johnson made two decisions of any great significance. One was to allow Tory donor Lakshmi Mittal to sponsor the games, by building the Orbit statue next to the Olympic Park. It is entirely incongruous to its surroundings. It served no function whatsoever, either during the Olympics or after, other than as an advert for Lakshmi Mittals company. The other came directly after the games, when he personally intervened to make himself chair of the London Legacy Development Corporation. He personally managed the deal with West Ham United Football Club. There is no one, apart from West Hams owners, who are also Tory donors, who would consider this deal to be anything other than terrible. It is a complicated saga, many mistakes were made, many of them many years before Johnsons involvement. But it was he who decided to spend hundreds of millions of pounds trying to make the Olympic Stadium suitable for football. The consensus of opinion is that it is not suitable for football. And the rent paid by West Ham, spread over a hundred years, will still end up being significantly less than the taxpayer has paid to convert it to keep them happy. The G4S saga aside, which in the end, arguably improved the games, the legacy of the Olympic Stadium (now the London Stadium) itself is its only failure. It is the only aspect in which Johnson was materially involved. This is not to say his role in London 2012 was not significant. It was. London 2012 made this country feel good, in a way it has not at any other point in its recent history. The London mayor played a significant role in that. He was its head cheerleader, and he did a wondrous job. His detractors still love to share the clip of him stuck on a zipwire in Victoria Park, as if evidence of his being some kind of imbecile. The reaction to the incident at the time was joyful. It was extremely funny. At the end of the games, he gave an incredible speech outside Buckingham Palace, entirely upstaging the then prime minister David Cameron. As the Pet Shop Boys came out to sing, the crowds really did chant, We love you Boris, we do! We love you Boris, we do! I heard it with my own ears. Where one ranks the relative importance of these contributions is a matter of personal choice. To look back now, the love that was in the air in that incredible fortnight is worth far more than an ugly sculpture and a mess of a stadium. But the idea that Johnson in some way delivered the games? Not a chance. His Olympic contribution is relevant in another way though. Conservatives really do seem to think that Johnson can bring back his feelgood factor of old. If Johnson can win in London, he can win anything, they seem to think. Not a chance. That Boris Johnson, of 2012, is no more. He is a toxic, divisive figure now. He accepts that himself. Four years after London 2012, the crowds that gathered again for Boris Johnson are the ones that count. They were outside his front door on the morning of 24 June 2016, banging on his car bonnet, and shouting, scum. Whatever personal legacy he might have had from the games, he destroyed himself, years ago. It cannot be rebuilt. |
Should You Bail Out of Micron Stock Before Q3 Earnings?
Micron Technology(NASDAQ: MU)stock has witnessed a massive crash since the beginning of May, as investor sentiment has turned negative despite the chipmaker's assurances thatthings are improving. Fool.com contributor Leo Sun recentlypointed outthat the Trump administration's clampdown on Huawei and the trade war against China could cause a fall in DRAM prices.
This will dent Micron's prospects further because it is the third-largest DRAM manufacturer in the world. The memory maker is already facing a ton of trouble thanks to weak chip demand and a supply glut of memory chips, and things could get even worse when Micron releases its fiscal third-quarter results on June 25.
Image source: Getty Images.
Wall Street expects a 38.4% decline in Micron's third-quarter revenue to $4.8 billion, while earnings are forecast to shrink to $0.85 per share compared to $3.15 a year ago. The numbers are in line with Micron's own guidance, but don't be surprised if its results don't pass muster.
I'm saying this because the demand for PCs and smartphones -- the two main drivers of DRAM demand -- has been dropping at a faster pace now. According to market research firms IDC andGartner, PC shipments during the first quarter of 2019 fell to 58.5 million units.
Gartner's estimate puts the PC market's Q1 decline at 4.6% compared to the prior-year period, worse than the 4.3% drop seen in the final quarter of 2018. PC sales fell 1.3% in 2018, so there's a chance that the decline might accelerate this year.
Smartphone sales are tanking as well. According to IDC, smartphone shipments in the first quarter of 2019 were down 6.6% year over year. This is yet another red flag for Micron investors, as IHS estimates that smartphones will account for 28% of overall DRAM consumption through 2023.
Looking ahead, both these markets are expected to remain under pressure. The PC market, for instance, is reeling fromIntel's CPU shortage, a phenomenon that's expected to last into the third quarter of the year. Meanwhile, smartphone shipments could also take a beating thanks to theproblems faced byChinese smartphone giant Huawei, which is the second-largest smartphone maker in the world.
All told, Micron is heading into its third-quarter report without any concrete catalysts that could revive its growth, and there's a good chance that its outlook will be worse than its upcoming results.
According to Yahoo! Finance, analysts estimate that Micron's revenue will see a steeper drop of 40% in the fourth quarter, and its earnings will crash from $3.53 per share a year ago to $0.87 per share. It isn't surprising to see analysts projecting a larger decline at Micron given the U.S.-China trade war has the potential to hurt the DRAM market big time.
That's because China is the largest importer of memory products, with TrendForce estimating that the country consumes 20% of global DRAM production. What's more, Chinese consumers accounted for 57% of Micron's sales last year, up from 51% in 2017 and 43% in 2016. But this is not where the company's problems end, as Huawei accounted for 13% of its revenue for the six months that ended in February.
Now that Micron has stopped shipping chips to Huawei and is facing a backlash from Chinese chipmakers that are looking to push foreign chipmakers out of their economy, its fourth-quarter outlook won't be pretty.
Micron management had promised sequential growth in DRAM shipments during the third and fourth quarters. The end-market conditions suggest that the company might not be able to deliver on that front, and that would trigger another sell-off in Micron stock.
As such, it would be a good idea to stay away from Micron shares because the company might disappoint with both weak results and outlook later this month.
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Harsh Chauhanhas no position in any of the stocks mentioned. The Motley Fool recommends IT. The Motley Fool has adisclosure policy. |
Survey suggests wider public would have preferred Boris Johnson against Michael Gove in Conservative leadership contest
Those eligible to vote in the Conservative leadership contest consist of Conservative MPs and party members. They represent a tiny percentage of the British electorate. This fact has attracted criticism of the present contest given that it involves choosing a new prime minister. But how would the rest of the country vote if the electorate had a say in this contest? We can answer this question by looking at our survey of voters in Britain commissioned from Deltapoll which was carried out just before and after the European elections. This panel survey, which involves interviewing the same people twice, is part of a project to study the Brexit process. The sample is just over 2,500 people, which is more than twice as many as a standard opinion poll. We found that, while Conservative MPs chose Boris Johnson and Jeremy Hunt as their two finalists, the wider public might have preferred Michael Gove to take Hunts place. This will do little to help heal the wounds of Gove supporters, who have accused MPs backing Johnson of skulduggery . They believe some lent Hunt their votes to prevent Gove from making it through to the next round. Last-minute adjustment Just as our survey was going into the field, Theresa May announced that she was stepping down as party leader and prime minister. So, at the last minute, we included the following question in the survey: If Theresa May is no longer leader, which of the following people do you think would make the best leader of the Conservative Party? Support for Conservative leadership candidates in the British electorate We had to guess the names of the contenders at the time and, fortunately, got it right with the exception of Rory Stewart . He appears in the someone else category in the figure. We have already seen that in the various rounds of voting by Conservative MPs Johnson is the clear favourite to win and this turns out to be true among the voters as well. But, for second place, they marginally preferred Gove. He was just ahead of Hunt in popularity, and so setting aside the someone else category, voters in general would like to have seen these two in the final contest. Story continues Breaking it down by party It is interesting to see how different party supporters would vote if they had been able to participate in the contest. Support for Conservative leadership candidates by partisanship There are some interesting findings about how partisanship relates to candidate preference. For example, voters who identify with the Brexit party prefer Johnson even more than the Conservative identifiers. They also opt for hardline Brexiteer Dominic Raab in second place. Conservative identifiers, on the other hand, put Gove in second place instead of Raab and significantly ahead of Hunt. Labour and Liberal Democrat identifiers, and those who dont identify with a party all prefer a generic someone else candidate which reflects the fact that most of them do not like any Tory politicians. The crucial group for the new Conservative leader to win over is voters who have no party identification at all. This is because they are more likely to switch their vote in an election given that partisanship acts as a barrier to voters changing their minds. If the new leader is to rebuild Conservative support then he needs to appeal to this group. It appears that they prefer Johnson by a margin of more than two to one over their second preference, which is Sajid Javid . But they like Hunt more than Gove. The final outcome in the two horse race is likely to be more acceptable to them than to Conservative identifiers who like Gove more than Hunt. That said, it is important to note that the No Party identifiers are the group most likely to want a generic someone else candidate, suggesting that they may not be that impressed by the current line-up of leadership hopefuls. While Johnson may be the most likely to win them over, he will nonetheless have a hard task doing so, since they really appear to want an alternative even if it is not clear who that would be. This article is republished from The Conversation under a Creative Commons license. Read the original article . The Conversation Paul Whiteley receives funding from the British Academy and the Economic and Social Research Council Harold D Clarke receives funding from the National Science Foundation (US) |
The Zacks Analyst Blog Highlights: AngloGold Ashanti, SPDR Gold Shares, Black Hills, NexPoint Residential Trust and American River Bankshares
For Immediate Release
Chicago, IL – June 21, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AngloGold Ashanti Ltd. AU, SPDR Gold Shares GLD, Black Hills Corp. BKH, NexPoint Residential Trust Inc. NXRT and American River Bankshares AMRB.
Here are highlights from Thursday’s Analyst Blog:
Stocks from Winning & Losing Sectors, Post-Fed Meeting
As widely expected, the Fed stayed put in the latest meeting and hinted at rate cuts this year. The central bank will now “closely monitor the implications of incoming information for the economic outlook.” Though the Fed acknowledged about the economic wellbeing, it addressed that “uncertainties about this outlook have increased.”
More Fed members are now foreseeing a rate cut by next year. Nine members see the possibility of up to two rate cuts in the same frame of time. With inflation expectations tapering off, we expect some policy easing this year.
Inside Economic Forecast
The Fed upgraded its forecast for 2020 real GDP growth from 1.9% in March to 2.0% but maintained the 2019 and 2021 growth forecasts at 2.1% and 1.8%, respectively. The Fed projected the longer-run growth measure of 1.9%. Unemployment was guided down to 3.6% from 3.7% for 2019, 3.7% from 3.8% for 2020 and 3.8% from 3.9% for 2021.
PCE inflation expectations were cut from 1.8% to 1.5% for 2019 and from 2.0% to 1.9% for 2020, but were kept intact at 2.0% for 2021. Federal funds rate projections for 2019 were kept maintained at 2.4% but lowered to 2.1% from 2.6% for 2020 and to 2.4% from 2.6% for 2021. Over the longer term, the rate is projected at 2.9%, same was cut to 2.5% from 2.8% projected in March.
Market Reaction
The immediate impact should be felt in the bond market and the yield on 10-year U.S. Treasury dropped to 2.03% from 2.06% recorded the day earlier. As the policy easing move is largely expected, yield on short-term two-year bond yields fell a steeper 12 bps to 1.74%.
Against this backdrop, we highlight a few sectors that could gain/lose from Fed activity and guidance.
Winning Sectors
Gold Miner– AngloGold Ashanti Ltd. – Up 2% on Jun 19
If rates dive, the greenback loses strength and gold starts gaining. Gold bullion ETFSPDR Gold Shareswas up 0.6% on Jun 19. Gold mining also stocks surged as these act as a leveraged play of the underlying asset. AngloGold Ashanti Limited has a Zacks Rank #1 (Strong Buy).
Utilities– Black Hills Corp. – Up 1.7%
This sector performs well in a low-rate environment and serves better if investing sentiments are a bit edgy.
Black Hills Corporation is an energy company that generates wholesale electricity and produces natural gas, crude oil and coal. The stock has a Zacks Rank #2 (Buy) and yields 2.58% annually.
Real-Estate– NexPoint Residential Trust Inc. – Up 0.5%
This is another sector investors can lay a wager on. This high-yielding sector performs well in a low-rate environment.
The company is engaged in acquiring, owning, operating and selectively developing multifamily properties. It operates primarily in Southeastern United States and Texas. It yields 2.74% annually.
Losing Sectors
Financials– American River Bankshares – Down 1.5%
Sectors that flourish in a rising rate environment skid post the Fed meeting.
AMRB is one of them. American River Bankshares is the parent company of American River Bank, a regional bank in Northern California. It has a Zacks Rank #5 (Strong Sell).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBlack Hills Corporation (BKH) : Free Stock Analysis ReportAmerican River Bankshares (AMRB) : Free Stock Analysis ReportSPDR Gold Shares (GLD): ETF Research ReportsAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportNexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Nevro Corp. (NYSE:NVRO) Insiders Increased Their Holdings
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inNevro Corp.(NYSE:NVRO).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Nevro
In the last twelve months, the biggest single purchase by an insider was when Director Elizabeth Weatherman bought US$501k worth of shares at a price of US$61.45 per share. That implies that an insider found the current price of US$63.99 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders bought 9858 shares for a total of US$601k. While Nevro insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Over the last three months, we've seen significant insider buying at Nevro. In total, insiders bought US$601k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.4% of Nevro shares, worth about US$47m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Nevro we think they are probably pretty confident of a bright future. Of course,the future is what matters most. So if you are interested in Nevro, you should check out thisfreereport on analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
S&P 500 hits fresh record high as Pence sparks trade optimism
By Amy Caren Daniel and Shreyashi Sanyal
(Reuters) - The S&P 500 hit a new all-time high on Friday, as U.S. Vice President Mike Pence's decision to defer a planned speech on China policy rekindled optimism over trade talks between the world's two largest economies.
The decision was taken amid "positive signs" that trade talks with China could be back on track, the Wall Street Journal reported, citing a senior administration official.
The three main indexes were trading in a tight range rose on the report, with the benchmark S&P 500 index hitting an intraday high of 2,964.15, a day after closing at a record 2,954.18.
The United States and China have said that they would restart their trade talks after a long lull at the Group of 20 summit in Japan next week.
"Investors are cautiously optimistic about the G20 summit. If they make progress then markets will celebrate that," said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.
Stocks had their worst monthly performance this year in May on fears of the impact of the prolonged trade war on global economic growth.
Markets opened lower following an escalation in tensions in the Middle East after President Donald Trump delivered a warning to Iran of an imminent attack after Teheran downed a U.S. drone.
The possibility of a disruption of oil flows if the U.S. attacks Iran fueled a 1% rise in crude prices and pushed the energy sector 1.05% higher. [O/R]
At 11:24 a.m. ET, the Dow Jones Industrial Average was up 120.71 points, or 0.45%, at 26,873.88, the S&P 500 was up 6.83 points, or 0.23%, at 2,961.01. The Nasdaq Composite was up 10.99 points, or 0.14%, at 8,062.33.
Trade-sensitive industrials rose 0.1%, while the technology sector traded 0.1% higher.
Carnival Corp fell for the second day, down 4.94%, and among the biggest decliners. Several brokerages trimmed their price targets after the cruise operator cut its 2019 profit forecast.
Declining issues outnumbered advancers for a 1.26-to-1 ratio on the NYSE and for a 1.41-to-1 ratio on the Nasdaq.
The S&P index recorded 31 new 52-week highs and two new lows, while the Nasdaq recorded 32 new highs and 44 new lows.
(Reporting by Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila) |
Zacks Value Trader Highlights: Exxon Mobil, Apache, CNX Resources, SM Energy and Matador Resources
For Immediate Release
Chicago, IL – June 21, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
Is It Finally Time to Buy Energy Stocks?
Welcome to Episode #146 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
What’s the most hated industry on Wall Street?
It’s not retail, it’s energy.
After selling off in late 2018, the exploration and production (E&P) stocks are taking a beating again in 2019. Some are trading near 52-week lows.
That has created a buying opportunity and the insiders are jumping in.
Are they buying at the bottom or will this be another false bottom since crude prices began to plunge in 2015?
Where Are the Insiders Buying This Time?
1.Exxon Mobil Corp. XOMshares are actually up 10.5% year-to-date. But while that is still trailing the S&P 500 on the year, which is up 16.7%, the insiders haven’t been buying in 2019. Insider buying has been quiet at all of Big Oil so far this year.
2.Apache Corp. APAshares have fallen 33% over the last year even though first quarter production in the Permian was at a new record, up 36% year-over-year. Did the insiders see this as a buying opportunity?
3.CNX Resources Corp. CNXshares have fallen 35.7% year-to-date even though the natural gas E&P has been buying back shares with cash and has reduced share count by 15%. It expects $500 million in free cash flow in 2020. Did the insiders think this was a deal this spring?
4.SM Energy Co. SMhas a market cap of just $1.3 billion but it still pays a dividend, currently yielding 0.9%. It recently raised its second quarter and full year production guidance thanks to better-than-expected well performance. Shares are trading near 52-week lows. Who was buying?
5.Matador Resources Co. MTDRhas sunk 32% over the last year but has rebounded 15% year-to-date. In the first quarter, its total oil, natural gas and oil equivalent production were all at record highs. As of May 1, 70% of its oil production was hedged for the remainder of 2019. Do the insiders still think the shares are a value?
The insiders have to hold the stock for at least 6 months after they buy so insider buys are a long-term play, not a short term, on the stock and the company.
And the energy insiders have bought several times before when the shares have weakened, including in 2017 and 2018.
Is this time different?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of Apache in her own personal portfolio.]
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Media Contact
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCNX Resources Corporation. (CNX) : Free Stock Analysis ReportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportSM Energy Company (SM) : Free Stock Analysis ReportApache Corporation (APA) : Free Stock Analysis ReportMatador Resources Company (MTDR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Carnival Lowers Its Outlook Again
Heading into its second-quarter report, investors had cause for optimism thatCarnival(NYSE: CCL)might announce improving operating trends as it progressed deeper into fiscal 2019. Sure, the cruise ship giant reduced its outlook in the first quarter as ticket demand worsened in key areas like Europe. However, rivalRoyal Caribbean(NYSE: RCL)announced surprisingly strong gains in early May and boosted its outlook for the full year, suggesting industry trends were improving.
Carnival did indeed beat sales and profit expectations for the quarter that just closed. However, in its earnings report out Thursday the company said that demand trends moved sharply lower in a few key markets recently, and that this shift convinced management to reduce its growth outlook for the second straight time in 2019.
Let's dive right in.
The Carnival Elation cruise ship is shown here docked on Grand Turk island. Image source: Carnival
The second-quarter results were just a bit better than management hadpredicted back in late March. Carnival's net revenue yields rose by 0.6% to modestly outperform executives' flat forecast. That trailed Royal Caribbean's9% spikeby a wide margin, but it also showed Carnival had no problem packing its ships with guests. Once on board, meanwhile, those customers spent freely on activities, food, and entertainment. With currency exchange shifts accounted for, cruise revenue rose 5% to $3.8 billion.
Expense growth was more muted than expected, too, with gross cruise costs falling 1.3% rather than rising 1%. These successes, plus the timing of a few key expenses, led to adjusted earnings per share of $0.66, or about $0.08 per share above the outlook that CEO Arnold Donald and his team had issued.
The modestly positive second-quarter results were overwhelmed by atough outlookfor the remainder of fiscal 2020. Management said that, since late March, prices have drifted lower as cruise demand weakens in Europe. Executives cited geopolitical and macroeconomic factors as the main driver behind that slowdown. At the same time, new restrictions on travel to Cuba are shifting vacations away from that profitable destination.
All told, mostly negative developments over the last few months have management now expecting net cruise yields to be flat this year after rising by 4% in 2018. They had recently predicted a 1% uptick in that core growth metric.
Carnival also lowered its earnings outlook for the second straight quarter and now sees profits ranging between $4.25 per share and $4.35 per share, down from the prior target of between $4.35 and $4.55. At the midpoint, that guidance implies 5% growth compared to a 12% spike last year.
Executives still expressed confidence that the business will navigate through these challenges and achieve better long-term financial results, just as it has over the last five years. Donald says management feels good about its ability to quickly return to the double-digit earnings growth pace it has targeted over the long term. "This year our growth has been hampered by a confluence of events, which we are focused on mitigating," he explained.
Investors will have to be patient in waiting to learn about the timing of any potential rebound, though, since Carnival expects pricing and demand trends to remain weak through the second half of fiscal 2019.
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Demitrios Kalogeropoulosowns shares of Carnival. The Motley Fool recommends Carnival. The Motley Fool has adisclosure policy. |
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